Earlier quoted context omitted.
You only need the license if you watch live TV (on any service) or use BBC iPlayer. If you only watch DVDs, or stream movies etc, you don't need a license
When did they change it from if you could watch to if you actually watch?
But there's virtually no inspections any more. There were a lot of bad newspaper headlines about poor single mothers going to prison for getting caught (and refusing to pay the fine, but that bit usually got left out), so enforcement basically ended.