It's ridiculous to say you doubt people don't watch the BBC - some people are obviously stuck in the past.
I have Netflix, Prime, Disney+, I also watch several youtube channels. Anything BBC I want to watch ends up on Prime or Netflix eventually, for less money.
I don't have to watch ads for any of these. All the subscriptions together end up less than the license fee and I have more content than I can possibly watch in a hundred years, which is also constantly being renewed and new programs added.
If I want something specific I can almost always buy it on Prime for a few quid. Though they're a bit shit on old French films, but you can't have it all.
No young people i know watch BBC, ITV or any of the terrestrial channels at all. Before we got Netflix one of my children accused us of being neglectful because 'literally everyone else has it'.
It does seem the government is rather sad there's no longer one channel whereby they can brainwash tell people what to think, but that ship has very much sailed.
https://timesofindia.indiatimes.com/world/uk/critics-slam-proposals-to-force-youtube-to-prioritise-bbc-on-youtube-as-state-censorship/articleshow/132247477.cms
The blackbelt barrister has just put up a video about this.
I know that the BBC would much prefer I watch their doctored Trump videos, and content describing male rapists as 'she' as well as antisemitism and outright lies, but I prefer critical thinkers who at least give the impression of having an evidence base and some integrity, and some tenuous grasp of material reality, thanks. Who don't treat their viewers like gullible idiots.
Or just pure entertainment without an agenda when I want that.