The Broadcasting Act defines a Television Broadcasting Service as:
(5)In this Part “television broadcasting service” means (subject to subsection (6)) a service consisting in the broadcasting of television programmes for general reception in, or in any area in, the United Kingdom, including a domestic satellite service (as defined by section 43(1)).
The BBC says that the Licence fee is payable if you install equipment in your home for the purpose of, or with the intention of, viewing a Television Broadcasting Service.
Therefore, surely, viewing programmes through BBC iPlayer ITV Player, 4 On Demand, Sky Player or any other peer-to-peer method of watching television programmes is exempt from the licence fee? Downloading parts of a TV programme from numerous sources isn’t receiving a broadcast and uploading those parts through said peer-to-peer systems is not broadcasting.
So if you only watch TV through an on-demand service you shouldn’t have to pay a licence fee. Or am I missing something?