Video report by ITV News Consumer Editor Chris Choi
From September 1 viewers will need a TV licence to watch or download BBC programmes through iPlayer.
This decision puts to an end the loophole which existed before, whereby people could watch BBC programmes without having to buy a television licence.
But what do all the changes mean and how will it affect viewers?
What are the new restrictions on watching programmes on the iPlayer?
From Thursday, September 1, anyone wishing to watch on-demand television on the BBC iPlayer must have a TV licence.
What has changed?
Previously there was a loophole which meant people could watch BBC programmes on-demand with no television licence.
Do the changes only apply if you watch iPlayer on the TV?
No. If you are using the iPlayer, no matter what device you are watching it on - phone, tablet, TV, desktop computer - you must have a TV licence.
Does the change apply to other on-demand services?
No. You can still watch other on-demand services such as All 4, the ITV hub, Demand 5 and Netflix without having a TV licence. However, some of these services have subscription fees.
Is it illegal to not have a TV licence?
If you are watching or recording live television, and now using the BBC iPlayer, it is a legal requirement to have a TV licence. Even if you do not watch the BBC channels, but still watch TV, you must have a TV licence.
Does everyone have to have their own TV licence?
A TV licence will cover a household, no matter how many televisions are in it. If there is one TV in a house you will need a licence, or if there are six you still only need the one licence.
One TV licence per household is required in the majority of cases, however, if you have a single tenancy agreement you will need separate TV licences. A single tenancy agreement means you rent a room in a house or in a halls of residence, and if this is the case you will need your own separate licence. If you have a joint tenancy agreement one licence is needed for the household.
What happens if I don't buy a TV licence?
If you are watching television or the iPlayer without a licence then you face prosecution, a fine of up to £1,000 and legal fees on top of this.
How much does a TV licence cost?
A standard, colour TV licence costs £145.50 and is valid for 12 months. A black and white TV licence costs £49. The fee can be paid yearly, monthly, or weekly.
Can BBC programmes be watched on other services?
Netflix - which has a monthly subscription cost - broadcasts some BBC series.
Is Netflix more expensive than a TV licence?
After a free month-long trial, a Netflix Premium account costs £8.99 per month, while a TV licence works out at £12.13 per month.
Where can I get a TV licence?
You can buy a TV licence online or over the phone by calling 0300 790 6165.