I suppose if the BBC were to be made into a subscription service probably at least half of the people who currently hold a licence wouldn't bother subscribing, slashing the BBC's income. They would need to charge their subscribers a lot to cover their current spending. But at £13.25 a month the licence already looks expensive compared to most streaming services, like the basic Netflix package or Disney+ (£7.99 a month). Of course the BBC covers a lot more, like all the regional programming, news, radio and current events which streaming services don't offer, but most people won't see that and will just want to cut their monthly outgoings. With the cost of living crisis they may have little choice anyway.
So the BBC will resist the subscription model all they can. They can't just keep pretending it's the last century though, and of COURSE you watch TV and need a licence by default. There are so many young people now who only stream stuff, like my DD and her partner. Conventional tv watching is dying out.
I would like to keep the BBC though, as it is broadly a good thing. If it was to be funded from general taxation how would the BBC be kept independent from the government of the day?, that's a real issue.
The BBC tries to do too much, they should slowly scale down their activities and the licence fee should be frozen at least. It's unsustainable. Perhaps there could be subscription for some of their output, with news etc free, and this enshrined in law somehow. Perhaps they could take limited advertising, don't know, or this might be problematic.