Hmmm...
The licence fee system has always been an obnoxious oppressive tax, it isn't so much that it should be scrapped but that it should never have been implemented in the first place.
However, having the BBC has value to the UK, and should be kept going, even if it must adhere to obligatory guidelines about bias, standard of programmes, and the like.
Chasing limited ad revenue is a disastrous suggestion. One only has to look at the quality of offerings from other channels ever since the UK switched from 5 terrestrial analogue channels to a multitude of digital ones. It's right down the pan and one ends up with a choice between repeats galore, or lowest common denominator quality, due, presumably, to low budgets.
IMO the BBC should still be publicly funded, and have It's own voice, but needing to justify what it puts out. How that is achieved when one needs to balance both independence and insistence of standards and lack of bias, is not easy to see; and is where attention and discussion needs to concentrate.