I'm still trying to figure out why the BBC even THINKS they need a TV license in the age of the internet. I mean, I know it's to tax the dumb and ill informed, but holy shit. I've seen more and more people actively refuse them and just go with a standard streaming service, and these goons STILL think they can just bully people into paying it. I've seen a few of the TV license people visit vids, and that shit is just ... weird to me. Especially with those involving the police. OVER A FUCKING TV TAX.
Now I'm beginning to understand why we dumped all that tea into Boston Harbor all those years ago.
TLDR - it's needed because if people had a choice the BBC would have to make programming that people actually wanted.
Think of it this way. If a company produced a product that people didn't want and chose not to buy, wouldn't it be so much better for that company (though not anyone else) if the company's entire potential argument were compelled by criminal sanction to buy the product. That's the TV licence. The BBC needs it because otherwise they would have to produce a product that people actually wanted and were prepared to pay for. The BBC has no interest in doing that.
They say it's public service; the problem with that is the public don't want it (hence the compulsion). They say not having adverts is intrinsic to the special quality of the BBC; BBC content is full of adverts (almost all for the BBC and other BBC content) the real issue being advertiser income relates to program popularity which reverts back to that core issue of people not wanting BBC content. They say people (esp the elderly) wouldn't be able to cope with the mechanics of setting up a streaming subscription (I shit you not, this is a real BBC argument). Leaving aside that this is a problem that all the streamers seem to completely avoid (signing up being remarkably easy; cancellation not so much), this is the same BBC that was happy and enthusiastic to render all analogue reception gear useless requiring new digital kit (often inc a new aerial installation and an engineer home visit) a decade or so ago. The difference then was that the switch to digital was wanted by the BBC so the "problems" went away; in reality they were downplayed and ignored.
The mechanics and enforcement of the licence have been a problem for decades. From the 1960s we had the myth of the detector van trawling the streets detecting who was watching and what they were watching. Creepy stalker stuff - we monitor what you are doing in your own home! Funny thing is, in the relatively few cases where people challenged it, the prosecutions were dropped. All of them. It was bullshit. Just a confidence trick to coerce guilty pleas and payments by lies. The MO of the licence enforcement is to con people into believing they have to allowed in to inspect and catalogue your home electronic and it is the evidence of those "consensual" home inspections that get convictions.
The response to streaming is to expand the requirements so that not only is a licence required for receiving BBC (and anyone else's) terrestrial broadcasts. It's also required for the BBC's iPlayer (whether live or VOD) and for other live streaming services (not VODs).
The real question is how can the licence fee (and the BBC generally still be a thing). There's no real rational defence and those who attempt it tend to do it by drive bys - valued public service, quality, advert free - as if they slow down for a moment it allows for responses that point out that these arguments have no foundation in reality. The only major political party that publicly talks about the issue is the Conservatives but they just talk. For all their performative complaints about bias the BBC is the UK gov't's controlled mouthpiece.
N.B. the standard repost to criticism that nothing is being done to get rid of the licence fee (or the BBC generally) is "we can't do anything until the next royal charter renewal", renewal comes up and it gets renewed for another seven years. That's another lie. There are two fundamentals in UK constitutional law; Parliament is supreme (an Act of Parliament is the ultimate authority) and no Parliament may bind its successor. An Act could be passed today abolishing the licence and the BBC and the charter would cease to be relevant. For an Act to pass in needs House of Commons approval, House of Lords approval and Royal Assent. Commons approval is the significant one and the Conservatives have had many many years for that. Lords approval can be dispensed with at the cost of a year's delay (immediately if the Lloyd George approach of packing is taken) and Royal Assent is a formality.