Millions more people could be forced to pay the £180 TV licence fee under BBC proposals. Some 3.6 million households report not needing a TV licence because they do not watch the BBC or any live programmes online.

Currently, a TV licence is required to watch any live video content on any streaming service, including Netflix and Prime Video, which regularly host events including live sports. But the BBC has suggested the licence fee should be extended to anyone who streams content from other providers, whether it is live or viewed on-demand.

BBC bosses argue the broadcaster’s current funding model is “not sustainable and needs reform” as it faces cost-saving measures, increased production costs and declining licence fee income.

The BBC is currently used by 94% of adults a month, but only 80% pay the licence fee, according to the latest figures. The annual charge will rise to £180 from April 1, up from £174.50.

A TV licence is required for watching or recording live TV on any channel or service or iPlayer.

But the BBC maintains that many viewers who watch “live” broadcasts on streaming platforms don’t realise they should have a licence.

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The broadcaster has accused platforms of failing to tell their viewers of the need for a TV licence.

The BBC said the need for a licence is not widely understood by audiences, and “there is little or no effort made by the services in question to inform them”.

In its response to a Government consultation on its future, the BBC said it was willing to consider “radical” funding options.

It said the suggestion of a subscription model would lead to “a very different BBC” which would “not be universal”.

Instead, it would be “based on maximising value to some not to all”, and “turn a public service into a consumer product, excluding many households”.

The BBC response also raised issues with suggestions of a two-tier or top-up subscription model, in which more commercial content is behind a subscription tier.

It said: “This would deny non-subscribing households, including those that cannot afford to subscribe, access to content that is central to the BBC’s public purposes.”

In response to the suggestion in the Government Green Paper that more households are required to pay but each would pay less, the BBC said: “We welcome this kind of radical thinking.”

The response added: “A price cut to support the cost of living and affordability is not sustainable under the status quo, however in combination with other changes to protect universal funding it could be a bold move to support the BBC’s long-term sustainability.”

The BBC also said it is “open to operating more concessions to help with affordability”.

At present, there are three concessions funded from licence fee income, including free TV licences for over-75s in receipt of pension credit, half-priced licences for the severely sight impaired or blind, and an annual fee of £7.50 for people living in some types of care.