Those watching BBC programmes exclusively on their iPlayer will need to buy a license from September 1st as the government wants to "modernise the system" to stop iPlayer users getting a “free ride.”
Though the vast majority of households own a TV licence, those without one who only watch catch-up content and not live broadcasts until now have been exempt from paying the £145.50 annual charge.
Those who have a TV licence will not be affected, only those who exclusively use BBC iPlayer to watch BBC content.
The ‘iPlayer loophole’ represents lost income of around £150 million a year for the BBC.
The former Culture Secretary, John Whittingdale, said in March that "The BBC works on the basis that all who watch it - pay for it. Giving a free ride to those who enjoy Sherlock or Bake Off for an hour, a day or a week after they are broadcast was never intended and is wrong."
The new leadership agrees and the new rules will apply to all those who used equipment to access iPlayer, including laptops, smartphones, tablets, TV streaming devices and games consoles, as well as third-party services such as Sky, Virgin and BT.
Other on demand services will remain exempt so viewers can continue to watch ITV Player, All4, My5 and Netflix.
The government’s TV Licensing unit commented that under 2% of UK households will be affected by the changes and the new law will "not affect the huge majority of households which are already licensed."
There will be a publicity campaign to promote awareness and to threaten fines for non-adherents.
The government has been threatening to close the loophole but on the plus side, the BBC will continue to swallow the £750m cost of free licence fees for the over-75s.
There is relief from BBC Radio listeners as on-demand radio content on iPlayer is not covered by the new legislation, nor is content from S4C’s Welsh broadcasts.