The BBC is facing a review into the future of the licence fee amid fears it is “unsustainable”.
Ministers are expected to formally announce the review of the corporation’s funding model in the autumn.
It will consider alternatives including subscriptions, a broadband levy, increased commercial activity and advertising.
The findings will be presented to ministers in 2024.
It comes as the BBC’s annual report released last week showed the number of people opting to pay the £159 a year charge had dropped by 500,000 to 24.3 million
A government source told The Times: “The evidence that there is a growing unwillingness to pay is shown by figures each year. The licence fee model is becoming unsustainable.”
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