Make it voluntary
The difficulty is, we are forcing people to subscribe to a state channel in order to have the right to watch any TV. This is plainly wrong. However, to correct this wrong we do not necessarily have to privatise it.
The right thing to do is keep the present ownership structure, but remove the obligation to subscribe. If you do not want to watch it, why should you have to pay for it? Make it subscription TV like all the other channels.
The BBC would then adjust itself to a size appropriate to its revenues, it would remain a non-profit foundation with its present high minded objectives, those who want to watch it would pay to do so, those who do not would not have to. Perhaps it could be made into a sort of mutual or coop structure, owned by its subscribers, who would, as with savings banks, elect the Board.
It is very difficult to see any objections to this proposal. All other alternatives seem to involve forcing people who do not watch it to pay for the pleasures of those who do. That is just crazy.
No-one goes around saying there should be a tax on, for instance, white paint, so that those who want to paint their houses in colours can get a discount. No-one says I should have to have a NewsCorp ID card showing I have subscribed to the Times, before I am allowed into a newsagent to buy the Independent. No-one thinks I should have to subscribe to UK TV Gold, which I have no desire to watch, in order to be allowed to watch Channel 4. Well then, why should I have to subscribe to the BBC, which I also may have no desire to watch, in order to be allowed to watch Channel 4?
Isn't this just perfectly obvious and reasonable? Make subscription voluntary, and those who want to watch it will subscribe and the rest not. What's the problem?
I might add, I would immediately subscribe, and I would be happy to pay more than the present license fee. I am however very uncomfortable with people who do not want to being forced to pay, so I can pay a bit less.