The BBC has backed the change to give it

Culture Secretary John Whittingdale today said he would close the iPlayer loophole shortly

TV viewers slammed the Government's 'outrageous' announcement today that it will close a loophole allowing people to watch BBC iPlayer without a TV licence.

Culture Secretary John Whittingdale said the BBC only worked if everyone who watched it paid for it and vowed to end the chance for people to get a 'free ride' to watch hit shows such as Sherlock or the Great British Bake Off.

He said he would press ahead with changes to the law and the loophole - which is thought to cost the BBC around £150 million a year - is expected to be closed within months, meaning iPlayer viewers who do not have a licence will face fines of up to £1,000.

But viewers reacted angrily to the news and vowed to abandon BBC programmes altogether in favour of private TV streaming services such as Netflix and Amazon Prime.

Others questioned how the BBC will enforce the charge for iPlayer viewers and the move also resurfaced calls for the BBC to change its payment model so it only charges viewers for the programmes they watch.

Tory MP Andrew Bridgen, who has campaigned for fundamental reform of the BBC's funding, told MailOnline that the move was 'not a sustainable model for the BBC going forward' and suggested it should only start charging for its iPlayer if it put its whole back catalogue online, which could raise money for the corporation from across the world.

The iPlayer, which pioneered online streaming for a mass audience when it launched in 2007, is freely available in the UK to anyone who visits the site. No log in details are required.

Today's announcement comes amid on-going talks over the future of the BBC charter, its governance and funding model - based on the £145.50 a year licence fee.

Speaking at the Oxford Media Convention today, the Culture Secretary said: 'When the Licence fee was invented, video on demand did not exist.

Viewers were outraged by the decision to start charging for the iPlayer and some questioned how the BBC would enforce the new charge

'And while the definition of television in the legislation covers live streaming, it does not require viewers to have a licence if they watch BBC programmes through the iPlayer even if it is just a few minutes after transmission.

'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 an hour, a day or a week after they are broadcast was never intended and is wrong.

'So, having discussed this with the BBC and the BBC Trust, I will be bringing forward, as soon as practicable, secondary legislation which will extend the current TV licensing regime not only to cover those watching the BBC live, but also those watching the BBC on catch-up through the iPlayer.'

He said he would fast-track the change through by the end of May by using so-called secondary legislation, which does not require lengthy Parliamentary debates.

Closing the iPlayer loophole will mean viewers will no longer be able to access the site, pictured today, without a TV licence

Viewers suggested the BBC only charge for the programmes they watch while others called for the corporation to put its whole catalogue online if it starts charging for the iPlayer

The BBC today backed the proposed law change.

A spokeswoman said: 'We are happy to have reached an agreement with the Secretary of State on how to close the iPlayer loophole.

'Its swift closure will help give the BBC funding certainty.'

One viewer, Kevin Watkins, said on Twitter: 'So I’m going to be forced to buy a TV licence to watch iPlayer? Why not just charge me a subscription fee for the stuff.'

Another raised doubts over the BBC's ability to enforce the online charge. 'Nice idea but good luck implementing it,' tweeted one viewer named 'Tim'.

And Daniel Barnes said the move would drive him to other online streaming services. He tweeted: 'Thank you @JWhittingdale for pretty much confirming that I won’t ever be paying for a TV license, Netflix and Amazon Prime here I come.'

Mr Whittingdale said online viewers who do not also have a TV licence would no longer get a 'free ride' to watch shows such as Sherlock, left, and the Great British Bake Off, won last year by Nadiya Jamir Hussain, right

The crackdown will affect almost 1.5million people in 700,000 households and businesses who can legally watch major series such as War And Peace and The Great British Bake Off.

Students and other young people are thought to be the main culprits – effectively relying on older generations to subsidise their viewing. The BBC could use different methods to police online viewers.

WHITTINGDALE NAMES STRICTLY AND BAKE OFF WHEN CHALLENGED ON BBC 'DISTINCTIVENESS' Strictly Come Dancing has been a huge hit for the BBC but prompted concern from some it damaged commercial outlets Culture Secretary John Whittingdale today named Strictly Come Dancing and the Great British Bake Off when challenged about BBC 'distinctiveness'. Mr Whittingdale insisted such decisions would not be for him but were a judgement for whoever was appointed to 'assess' programmes. The Culture Secretary has also focused on 'soft news' as potentially being outside the BBC's public service remit. He praised new drama The Night Manager today as an example of something clearly 'distinctive'. While a backbencher, Mr Whittingdale was criticised for suggesting populist BBC shows including the Voice should not be made by the publicly funded broadcaster. Shortly after he was appointed to the Cabinet, he was forced to defend the remarks and insisted he was not an 'enemy' of the BBC. Advertisement

Top of the list of options would be a Netflix or Sky Go-style password linked to each television licence, which users would have to enter before they are able to watch programmes on the iPlayer. Bosses have resisted this so far, fearing the move could turn the BBC into a subscription service.

The broadcaster would have to decide how many gadgets it should allow people to access for every television licence bought. Too few, and large families may not have enough for everyone’s televisions, laptops, tablets and smartphones. Too many, and they are likely to be abused and shared too widely.

An alternative would be to ask viewers to enter their personal details before using the service, and simply cross-check these with addresses whose residents have paid the annual £145.50 licence fee. If the details don’t tally, the BBC could send warning letters and even enforcement officers to get miscreants to pay up.

Although this is not the most sophisticated method, the BBC has successfully used it to scare people into paying the licence fee. In fact, it is frequently criticised for being heavy-handed.

Yesterday Mr Whittingdale received a detailed review on the future of the BBC which suggested an overhaul of the organisation's governance as part of the on-going charter renewal process.

The report by Sir David Clementi recommended scrapping the BBC Trust, handing regulation to Ofcom, and establishing a single BBC board to run the BBC.

Mr Whittingdale said today: 'Sir David has not only characterised the current arrangements very fairly – both in terms of its strengths and weaknesses.

'He has also set out a clear, sensible, vision for how the BBC can be reformed for the better.

'And his ideas for the principles of simpler Governance structures and streamlined regulatory arrangements that have public interest and market sensitivity at their heart, are ones that it would be very difficult for this – or indeed any – Government to overlook.'

Mr Whittingdale said a further report had identified a lack of 'distinctiveness' in the BBC's mainstream offering.

He said today: 'The report also shows that in some areas the BBC has become less distinctive in recent years – particularly on BBC 1.

'It also flags up that Radio 1 and Radio 2 are less distinctive than the BBC claim and that the soft news element of the BBC's online services is of limited public value.

'The report goes on to suggest that a more distinctive BBC would provide benefits both for the organisation itself, and for the wider media sector…

Because not only would it deliver greater variety for licence fee payers, it could also have a positive net market impact and increase commercial revenue by over £100m per year by the end of the next Charter period.'

Mr Whittingdale added: 'But what the headline figures show, is that the Director General's drive for greater distinctiveness can be good for the BBC, good for Licence Fee payers, and good for the wider sector, and that is something that the next Charter should encourage and embrace.'

Speaking after his speech, Mr Whittingdale told the Guardian said: 'Whether or not Strictly or Bake Off or other programmes are too removed or absolutely distinctive that is for the judgment of whoever will have the task of assessing BBC programming.'

BBC2 'IS BRITAIN'S WHITEST TV STATION' BBC2 is the whitest television channel, race campaigner Trevor Phillips has claimed. The former chairman of the Equality and Human Rights Commission criticised the station for failing to attract enough viewers from ethnic minorities. ‘BBC2... is by some distance, Britain’s whitest TV station,’ he said. His comments come 15 years after the BBC’s then boss, Greg Dyke, branded the broadcaster ‘hideously white’. It has since tried to boost the number of black presenters and actors, as well as those from other minority ethnic backgrounds. Research shows 5.7 per cent of TV viewers watch BBC2. However, that figure falls to 3.3 per cent among black and other ethnic minority audiences. The figures are worse for current affairs programmes – 30 per cent of the TV audience watches the BBC Six O’Clock News, compared with 15 per cent of ethnic minority viewers. A BBC spokesman said: 'BBC Two has been growing its Black, Asian, and ethnic minority audience over the last year. 'Major seasons of programming on India and China have aired recently and a new season on Black Britain is being shown this Autumn. New and established talent such as Liz Bonnin, David Olusuga, Dr Saleyha Ahsan, Anita Rani, Romesh Ranganathan, Javone Prince, Rory Reid, Patrick Ayree, Monica Galetti, Jing Lusi and Reggie Yates all feature in a wide range of BBC Two programmes. 'Three quarters of BAME audience households feel that the BBC serves them well and BBC One is the most popular channels across all BAME audiences.” Advertisement

A BBC spokeswoman today said: 'We agree with improving distinctiveness, but not with shrinking the BBC.

'The BBC's services are distinctive and have become more distinctive in this Charter period.

'The response to the Government's Green Paper shows that licence fee payers overwhelmingly agree.

'The BBC's services must continue to be run in the interests of audiences, not for the benefit of competitors.

'We are concerned that some of the report's proposals would risk undermining the universal appeal, reach and quality of the BBC's main services, BBC1, BBC2, Radio 1, Radio 2 and BBC Online.'

Shadow culture secretary Maria Eagle yesterday slammed the proposed changes to the BBC regulatory structure.

She said: 'Any replacement of the BBC Trust must stand up for license fee payers and viewers, not the Government of the day.

'The BBC currently handles around ten times more complaints than Ofcom.

'If Ofcom is to take on entire regulatory oversight of the BBC, the Government must provide sufficient resources for them to do a proper job.'

The BBC backed Sir David's report.

A spokeswoman said: 'We share his view that external regulation and a unitary Board for the BBC will bring greater clarity to the Corporation's governance.

'If delivered, these proposals will bring about the most significant change in governance and regulation of the BBC in its lifetime.

'That is why it is important they are implemented in a way that strengthens the BBC's editorial independence and ensures that future decisions about the Corporation are made very clearly in the best interests of audiences, who own the BBC.'

BBC Trust Chairman Rona Fairhead: 'Sir David Clementi proposes a strong BBC board and a strong external regulator – a change we have argued for.

'It will be important to get the details right, and we now want to work with the Government to ensure roles are clear, the structure is effective and the BBC's independence protected.'

Ad-blockers are a 'protection racket' and content will disappear if media companies can't make money, Culture Secretary admits

Mr Whittingdale today warned new albums from artists such as Muse would be impossible if media firms could not sells adverts around otherwise free content

The Government could intervene over online ad-blockers, the Culture Secretary said today.

John Whittingdale said he shared the concern about the impact of the software - which hides adverts on websites automatically - had on industries from music to news.

He told the Oxford Media Convention research suggested the public advertising funded media but objected to instrusive advertising.

But the Secretary of State said ad-blockers were running what some saw as a 'modern day protection racket'.

And he warned: 'If people don't pay in some way for content, then that content will eventually no longer exist.

'And that's as true for the latest piece of journalism as it is for the new album from Muse.'

Mr Whittingdale continued: 'What (consumer) dislike is online advertising that interrupts what they are doing. They don't like video or audio that plays automatically as soon as a web page has loaded.

'Or pop-ups that get in the way of their browsing experience.'

The Culture Secretary added: 'If we can avoid the intrusive ads that consumers dislike, then I believe there should be a decrease in the use of ad-blockers.

'I am not suggesting that we should ban ad-blockers but I do share the concern about their impact.

'And I plan to host a round table with representatives from all sides of the argument to discuss this in the coming weeks.