More Britons now turn to Netflix than the BBC when they switch on the TV as the embattled broadcaster struggles to hold its ground against streaming rivals.

More than a quarter of viewers – 26pc – say Netflix is their first choice when looking for something to watch, according to new figures from Ofcom.

That is just ahead of the BBC, which is the first choice for 25pc of viewers, while ITV lags behind on 15pc.

Ofcom’s findings underscore the scale of the challenge facing the BBC in an increasingly fierce battle against deep-pocketed streaming rivals.

The corporation is locked in discussions over the future of the licence fee funding model as part of a broader review of its Royal Charter.

The number of people paying the licence fee dropped by more than half a million last year, taking the total to its lowest level since 1999.

Ministers are exploring alternatives to the licensing system, including adverts or a Netflix-style subscription model.

Other ideas under consideration include forcing subscribers to streaming services to pay the licence fee to watch the BBC and putting BBC iPlayer behind a paywall.

Netflix has said it would be “eager” to play host to programming from the BBC and other broadcasters as they seek to reach larger audiences.

The US company has struck a landmark deal with French broadcaster TF1 to carry live programming, including news, in a model that could be replicated elsewhere.

The BBC’s struggles come amid a broader decline for traditional TV.

While an average of 70pc of the population watched broadcast TV last year, that was down from 73pc in 2024 and 78pc in 2022.

As a result, overall viewing time for broadcasters – which includes public service TV as well as digital channels – fell by 11 minutes to two hours and 19 minutes per person per day as the decline in live viewing offset growth in their streaming services.

Netflix remains the most popular streaming service in the UK, with Britons tuning in for an average of 24 minutes a day, accounting for more than half the time spent watching a streaming service. The largest increase in viewing time has been among viewers older than 55.

More than 18 million UK households are now signed up to Netflix, though subscriber growth has started to flatline across all streaming services and revenue growth has largely been achieved through price rises.

In a sign that higher prices are starting to take their toll, the proportion of Netflix subscribers using its cheaper ad-funded tier jumped to 43pc at the start of this year, up from 31pc in 2024.

Both broadcasters and streaming services are also facing a growing threat from YouTube, which now attracts a larger audience than all of the BBC’s channels combined, according to separate data from ratings agency Barb.

The growth in YouTube viewing has largely been driven by increased watching on TV sets, with the average time spent watching in this format more than doubling since 2022 to 19 minutes last year.

Overall, the BBC remains the most-watched service, commanding 18pc of total viewing time. However, this is slightly down on the previous year and YouTube is now closing in with a viewing share of 15pc.

The report also found that the BBC continues to dominate major national events and TV moments. While Netflix had the two most-watched programmes in 2025 with KPop Demon Hunters and Adolescence, the BBC claimed eight of the 10 most-watched programmes in the first three months of this year, including The Traitors and The Night Manager.

The BBC also pulled in a peak audience of 24 million for England’s World Cup semi-final defeat to Argentina – the biggest live television event of the year.

Kate Davies, the head of strategy and research at Ofcom, said: “As audiences increasingly benefit from an incredible choice of content, competition between traditional broadcasters, streaming services, video sharing platforms and other forms of digital media is fierce.

“But in face of these challenges, traditional broadcasters are showing resilience with the power to bring millions of us together to watch or listen for big, national moments, as well as growing their digital offerings.”