The UK’s BBC Charter Review is examining how the corporation should be funded as viewing shifts from traditional television towards streaming and online services.
The current television licence costs £180 a year for 2026/27, following an inflation-linked increase that took effect in April. The government’s review is considering reforms to the licence fee as part of efforts to establish a sustainable funding model for the BBC beyond the current Charter, which expires at the end of 2027.
One proposal being discussed would move the basis of payment away from television ownership or use and towards household connectivity, potentially collecting a public-service broadcasting contribution through broadband subscriptions. Such a model would reflect the growing role of internet-connected devices and on-demand platforms in how audiences consume television and other media.
However, the UK government has not announced a decision to replace the licence fee with a broadband levy. Its published Green Paper states that the government is considering reforms to the existing licence fee, including changes to the services for which it applies and possible differential rates, while explicitly ruling out a new household tax, general taxation and a levy on streaming-service revenues as alternative funding models.
The funding debate comes as licence-fee collection faces growing pressure. A House of Commons Library briefing noted that more than 12% of households that require a licence were estimated not to hold one in 2025, compared with around 6% in 2015. The same briefing highlights the shift towards on-demand streaming as a key challenge for the traditional model.
Concerns around affordability and digital inclusion are also central to the debate, particularly if access to essential broadband connectivity becomes linked to public-service media funding.
For African broadcasting markets, the discussion has wider relevance. A number of public broadcasters across the continent continue to rely partly or substantially on licence-fee systems, while changing viewing habits, digital migration and difficulties with collection are putting pressure on traditional funding structures.
The UK review therefore raises a broader industry question: as public-service broadcasting moves increasingly to connected platforms, should the mechanisms that fund it move with the audience?
