If its as great and wonderful as everyone says it is, and it must act according to market forces, the answer is simple.
Denationalise it and float it on the stock market. Then it could pay its presenters however much it wants to out of the squillions of pounds it would generate as the worlds greatest broadcaster.
Personally I think the whole thing is a combination of a leftie love in, a huge gravy train, and a sinister brainwashing machine.
I reserve a special loathing for the multi millionaire socialist, tax dodger Lineker.
The whole thing is a national disgrace.
Pretty much my view, except I refuse to pay a bunch of Marxists for a daily indoctrination, so I don't have TV.
Not the way to go if quality is required.
If advertising revenue is required to fund the BBC then wall to wall soaps and celebrity island trash will be the order of the day.
In my view the BBC should not be put in a position where it needs to compete. This is a race to the bottom. The BBC has already dumbed-down far too much with rubbish like Eastenders.
Once upon a time the BBC was a beacon of excellence. Sadly not any more and throwing it to the wolves would only make things worse.
BBC already has a heavy advertising schedule between programs for advertising their own monopoly of programs.
What is the difference between that and 3rd party advertising?
The Internet based digital TV revolution is going to make terrestrial broadcasting obsolete in the next 5 years. The flexibility this allows for consumption will allow many different types of revenue collection. I can't see how the TV license will be relevant or enforceable with thousands of global outlets offering video on demand, including near real-time (big enough delay, so TV tax, doesn't apply) news.
Of all the current broadcasters, currently, in the UK I can only see Sky surviving. There will be a smattering of European ones, where there are several major media companies, global ones like Sony and then US domination through Amazon, Apple, Disney, Google, Microsoft and Netflix. The major outlets will act as aggregators for a multitude of program makers.