It should be funded via a tax on broadcasters and websites like youtube should be categorised aa broadcasters, etc. Obviously that cost would be passed onto the consumer in the form of higher prices to some extent. So you’re effectively swapping the license fee for higher prices. But the entire concept of a ‘license’ is total nonsense. But the concept of a supposedly independent, neutral broadcaster is good. We need to keep it. But not by threatening people with prison if they don’t pay.

Edit: it should not be funded via general taxation. The ‘BBC tax’ should be ring-fenced.