People always say "Netflix/Amazon Prime are much better value" but this is because they're heavily, temporarily subsidised by investors and other companies, and they run at a loss! Their model is not sustainable, it can't last forever and the BBC wouldn't work if it tried the same thing. Inevitably the prices of Netflix and Amazon Prime will go up once they have a captive audience and have put most of their competition (which includes the BBC) out of business.
It's annoying how bad the BBC is at letting people know how much stuff other than Mrs Browns Boys etc the licence fee actually funds (probably because it's called a "TV Licence" which is such a misleading name). It also goes on orchestras, choirs, the Proms, educational content, CBeebies and CBBC, the news website, local radio, the World Service, radio documentaries, dramas and comedy. It goes on a lot of stuff that I'm glad we have, even though honestly I barely watch any BBC TV.
A portion of the licence fee also goes to Channel 4 and S4C, which also have a public service responsibility, as well as towards Freeview and Freesat maintenance, and emergency broadcast infrastructure.
If the BBC moved to a subscription-only model, it would only serve the people who subscribe. But as a national licence fee, it has a duty to (try to) serve everyone, which seems important.
Although personally I do think it should be absorbed into income tax (maybe Boris's wine fund could be redirected) and stop the awful threatening letters being sent out etc.