The BBC license fee is weird. Functionally everyone has a TV of some sort. If you want to tax everyone to pay for BBC content, why not just charge every taxpayer consistently (minus whatever discounts legislators think are appropriate). This “extending to streaming services” thing is bizarre. Netflix licenses BBC content if they stream it (right?) so this is asking for double payment.
The licence fee is currently only due if you watch live content. Owning a TV is not sufficient as there are now many people who own a TV set but don't actually use it to watch TV broadcasts, and there's not really much distinction between a TV and a computer screen other than size (kudos if anyone reading has a 70" computer screen though) and having a TV tuner built in these days.
That's the root issue really. The BBC is a provider of media that's increasingly irrelevant, and even if approval of it hadn't declined precipitously over the last decade or so it'd still have a big issue with the youth mostly not being interested in that format at all. It's not the only reason for declining ratings (declining quality is a big one) but it's a bad sign for the future.