TV Licence vs Streaming: Is It Worth It?
Compare the real cost of keeping your TV licence against going streaming-only
TV licence jumped from £159 in 2020 to £174.50 in 2025. That’s a 9.7% rise while wages crawled at 3.2%. Meanwhile, 67.5% of UK households now pay for at least one streaming service. Could you bin the licence and still watch everything you want?
Your Numbers
| Service | Cost Per Year |
|---|
How This Works
TV licence costs £174.50 per year as of April 2025, set by the Department for Culture, Media and Sport. This increased from £169.50 following September 2024’s CPI inflation rate of 2.96%.
Streaming costs come from each provider’s official UK pricing as of December 2025. Netflix raised prices in February 2025. Disney+ increased rates in September 2025. We multiply monthly costs by 12 to get annual figures.
This reflects average published prices. Your actual costs may differ if you share accounts, use annual plans with discounts, or catch promotional offers. Data sources include TV Licensing official website, individual streaming service pricing pages, and BARB’s Q1 2025 Establishment Survey showing UK household subscription patterns.
Why This Matters Now
TV licence rose £15 between 2020-2025 while BBC viewing dropped 23% among 16-34 year olds. Yet 25.3 million UK households still pay for it. Many don’t realise you only need a licence if you watch live TV on any channel or use BBC iPlayer. Catch-up services like ITV Hub, All 4, and My5 don’t require one.
Meanwhile streaming exploded. BARB data shows 20.1 million UK homes (67.5%) now subscribe to at least one streaming service. Netflix alone reaches 17.4 million homes. The average British household pays for 2.3 streaming subscriptions.
Here’s the catch: streaming prices keep climbing. Netflix Standard jumped from £10.99 to £12.99 in 2025. Disney+ Premium hit £14.99, up from £5.99 at launch in 2020. If you stack Netflix Standard, Disney+ Standard, and Prime Video, you’re at £285.96 per year before touching NOW or others. Add TV licence and you’re spending £460.46 annually just to watch telly.
Real People, Real Numbers
Emma, 28, Leeds
Setup: No TV licence, Netflix Standard with Ads (£5.99), Disney+ with Ads (£5.99)
Annual cost: £143.76
Saved: £30.74 vs TV licence alone
Emma cancelled her licence in 2023 after realising she only watched Netflix and Disney+. Hasn’t missed live TV once.
The Johnsons, Family of 4, Bristol
Setup: TV licence (£174.50), Netflix Premium (£18.99), Disney+ Premium (£14.99), Prime (£8.99)
Annual cost: £690.26
vs Streaming only: £515.76 (saves £174.50)
They keep the licence for BBC News and Match of the Day. Kids watch everything else on streaming.
Raj, 35, Manchester
Setup: No licence, Netflix Standard (£12.99), Prime (£8.99), NOW Entertainment (£15.99)
Annual cost: £455.64
Saved: Would cost £630.14 with licence
Ditched TV licence in 2022. Uses NOW for Sky Atlantic shows. Spends £38/month but gets more content than linear TV offered.
What You Actually Get
| Option | What’s Included | Annual Cost | Catch |
|---|---|---|---|
| TV Licence Only | All live TV channels, BBC iPlayer on-demand, live sport on terrestrial TV | £174.50 | Can’t skip ads on live TV, fixed schedules, limited on-demand |
| Netflix + Disney+ (both with ads) | Thousands of shows/films, watch anytime, multiple devices | £143.76 | No live TV, no BBC content, ads interrupt viewing |
| Basic Streaming Stack (Netflix Standard + Prime + Disney+ with ads) |
Massive content library, 4K on some content, ad-free on Netflix/Prime | £285.96 | Still no live news or sport, costs rise annually |
| Premium Everything (Licence + Netflix Premium + Disney+ Premium + Prime + NOW) |
Every live channel, every streaming service, 4K, multiple screens | £863.06 | You’re paying £71.92/month. Do you actually watch it all? |
FAQs
Can I legally watch TV without a licence?
Yes, if you only watch on-demand content that isn’t BBC iPlayer. Services like Netflix, Disney+, Amazon Prime Video, ITV Hub, All 4, and My5 don’t require a TV licence when watching catch-up or on-demand. You only need a licence if you watch or record live TV as it’s broadcast on any channel, or use BBC iPlayer for any content (live or on-demand).
What happens if I cancel my TV licence?
You must declare you don’t need one on the TV Licensing website. They may send someone to verify you’re not watching live TV or iPlayer. You can get a refund for unused months if you have at least one full month left. Over 9,000 people cancelled in 2024 alone. Just be honest about your viewing habits.
How much does the average UK household spend on streaming?
UK households with streaming subscriptions pay for an average of 2.3 services. If using budget tiers with ads (Netflix, Disney+, Prime Video), that’s roughly £215-£260 per year. Households choosing ad-free mid-tier plans typically spend £380-£450 annually. This data comes from BARB’s 2025 Q1 survey of 20.1 million subscribing households.
Are streaming prices going to keep rising?
Almost certainly. Netflix raised UK prices three times since 2021. Disney+ jumped 150% from its 2020 launch price of £5.99 to £14.99 for Premium in 2025. Streaming companies face pressure to become profitable. Expect annual increases of 5-15% as the norm. Factor this into your planning.
Can I watch live sport without a TV licence?
Not legally if it’s broadcast live. Match of the Day, Six Nations, Wimbledon on BBC all require a licence. Amazon Prime shows some Premier League matches, but you still need a licence to watch them live. You can watch highlights and replays later without a licence, just not the live broadcast.
What’s the cheapest way to watch everything I want?
Rotate subscriptions. Subscribe to Netflix for two months, binge what you want, cancel. Move to Disney+ next. Most content doesn’t disappear. This “subscription hopping” can cut costs by 40-60%. Also consider ad-supported tiers – Netflix with ads at £5.99 gives you the same content as Standard at £12.99, just with 4-5 minutes of ads per hour.
Do students need to pay for a TV licence?
Yes, if you watch live TV or iPlayer in your student accommodation. If your parents have a licence that covers their home, it doesn’t extend to your halls or student house. Each separate dwelling needs its own licence. However, you can watch on a device powered by its own battery (laptop, phone, tablet) using your parents’ licence, as long as you’re not plugged into the mains.
Is the TV licence going to be abolished?
Not in the immediate future, but it’s under review. The government committed to maintaining the licence fee system until at least 2027, with annual increases tied to inflation. After that, everything’s on the table – subscription models, advertising funding, or direct government grants. BBC viewing among young people dropped 23% in five years, making the current system increasingly unstable long-term.
References
- TV Licensing. “How much does a TV Licence cost?” Official TV Licensing website, accessed December 2025. Details annual colour TV licence fee of £174.50 effective April 1, 2025, set by Department for Culture, Media and Sport based on September 2024 CPI inflation of 2.96%.
- BARB (Broadcasters’ Audience Research Board). “Establishment Survey Q1 2025.” Published data showing 20.1 million UK households (67.5%) subscribe to at least one SVOD service, with Netflix reaching 17.4 million homes (59.2% penetration).
- Money Saving Expert. “TV licence fee to rise by £5 to £174.50 a year from April 2025.” December 4, 2024. Martin Lewis’s consumer finance website covering official government announcement of licence fee increases.
- Netflix UK. “Plans and Pricing.” Official Netflix UK pricing page, accessed December 2025. Standard with Ads £5.99/month, Standard £12.99/month, Premium £18.99/month effective February 2025.
- Disney+ UK. Official pricing information, accessed December 2025. Standard with Ads £5.99/month, Standard £9.99/month, Premium £14.99/month effective September 30, 2025.
- Gov.uk. “TV Licence – Find a Licence.” Official UK government portal explaining legal requirements for television licensing, including live TV and BBC iPlayer usage rules.
- Worldpanel by Numerator. “UK SVoD Market Report Q2 2025.” Industry data showing 19.9 million paid video streaming subscriptions in Britain, with 44% of households accessing at least one ad-tier service.