The television licence doesn't have a long-term future and is likely to be replaced by something else within the next 15 years, say a group of MPs.
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"Becoming harder and harder to justify" given media changes, the fee is according to the House of Commons Culture, Media and Sport Committee soon to become a thing of the past.
Those MPs have suggested that each household could pay a new compulsory levy instead, but the BBC doesn't agree that the fee would have to be replaced, instead accepting that it should simply be modernised.
Chairman of the committee John Whittingdale explained: "In the short term, there appears to be no realistic alternative to the licence fee, but that model is becoming harder and harder to justify and sustain."
The committee went on to say that in its "current form", they did "not see a long-term future for the licence fee".
In the report, it says "profound changes" shouldn't be rushed, but it did say that the BBC "must prepare for the possibility of a change in the 2020s.
"We recommend that as a minimum the licence fee must be amended to cover catch-up television as soon as possible."
It also states that it shouldn't be a criminal offence to avoid paying the licence fee.
Currently, households have to pay £145.50 a year if they're watching or recording live television, but a licence isn't required for catch-up television services online.
An option to replace the fee would be to make some services from the BBC a subscription-based platform, but the committee go on to say choosing which programmes remained available for free would require careful thought.
They then go on to claim the best alternative would be a compulsory broadcasting levy which all households pay, regardless of whether they watch television or how they watch - a system introduced in Germany back in 2013 which does away with prosecuting those avoiding the TV licence.