Audiences will lose loophole that allows them to watch the BBC’s iPlayer streaming service for free.

The closure will require iPlayer audiences to purchase a TV Licence, the yearly fee that contributes towards the BBC’s funding and is expected of all television owners in the UK.

The new law will come into effect on 1 September, and follows a suggested change in the UKs government’s White Paper on the future of the UK’s public service broadcaster.

The new subscription service will be used to capture what the government sees as lost funding and to stop those it claims are getting a “free ride”, as audiences turn increasingly to mobile platforms to watch catch-up TV content. The licence will not be required for those watching other streaming or on-demand services.

The changes will have a particular impact on students. Despite only 22% of students taking a television to university, research by TV Licensing shows that two-thirds of students watch on-demand services and 84% use watching television as a way to relax. However, there may be a concession for students accessing the service via portable devices, which will be covered by their parent’s Licence according to Wired.

The UK licence fee currently costs £145 per annum. Households that already have a TV license will not be affected by the change and will be automatically covered to view the iPlayer service.

A spokesperson from TV Licencing told The Guardian: “Fewer than 2% of households only watch catchup – and only those watching BBC iPlayer as part of their catchup and on-demand viewing will need to buy a licence from September. You will not need a TV licence to download or watch programmes on demand from other providers, such as YouTube, Netflix, ITV Hub, All 4 or Demand 5. All unlicensed households are being mailed and a publicity campaign will happen before 1 September.”