As part of the consultation, the government has asked the public what level of advertising they would be comfortable with on BBC platforms.
The options include extensive advertising, which would see the BBC carry adverts on all of its content and services, or a more limited advertising model, which would see adverts permitted on some online content and services, but not live TV or radio.
The public are also given the option of supporting the current approach of allowing no advertisements whatsoever.
The government said: “The BBC could potentially generate significant revenue from carrying advertising on its public services, while continuing to make them universally available.
“This funding model supports other public service media providers such as ITV, Channel 4, and Channel 5.”
If advertising is allowed, it would mark the first time adverts would be shown on BBC platforms in the UK in the corporation’s 100-year history.
The consultation also asks about a possible subscription model, which would see the BBC offer users additional services for a certain cost on top of the licence fee.
The public are asked how strongly they agree or disagree that they would be willing to pay for “a top-up subscription service for premium and entertainment content”.
The government stated in the green paper: “We have not ruled out keeping the current licence fee in place with its current structure.
“However, given the sustainability challenges it is facing, we are also reviewing the scope of services for which the licence fee is required and considering differential rates for specific types of users, to make it more sustainable for the long-term, along with increasing commercial revenue to ease the burden on the public.”
