They do make money from some of their content things like Top Gear and Dr Who are sold / licenced to platforms outside the UK.
says 65% of their income is from the licence fee
Good. Then they can expand their commercial operations and scrap the regressive TV license. £180 a year is not a trivial amount of money for everyone. Weirdly, they still do a £60.50 per year black & white TV license. (That's as archaic as having a tick-box on the Census form if you still use an outside toilet!)
But if you say the news needs to be paid for by the tax payer then what about BBC Weather, BBC Symphony Orchestra, BBC Radio, all the archive footage they have etc...
There is a reasonable case for making the BBC's news, historical education and political coverage taxpayer funded. Although, in the USA, PBS (15% funded by the taxpayer) and C-SPAN (not at all funded by the taxpayer) fulfil the last two roles. C-SPAN focuses primarily on live coverage of the House of Representatives, C-SPAN2 is dedicated to airing the live proceedings of the Senate and C-SPAN3 airs other federal government hearings, public policy events and educational historical programming.
However, BBC radio, arts, documentaries, entertainment etc should be paid for with subscriptions, advertising and commercial sponsorship deals. This isn't the 1940s or 50s, they shouldn't be using government coercion to pay for "Strictly Come Dancing" etc in this day-and-age.
It's not going to be a simple job to pick it all apart and if the BBC News was funded directly from Gov then there are going to be people complaining that its no longer independent.
But the UK Government already decides how much money the BBC receives from the TV license. The amount is decided by the Secretary of State for Culture, Media and Sport. TV license revenue goes directly into the government's Consolidated Fund. They then pass the collected revenue back to the BBC as a grant.
BBC News was heavily whipped by the government after the last Iraq war due to its coverage of that. They were able to bring pressure to bear on the BBC using the current system of funding.
There isn't a simple solution and I think eventually they are going to make it harder for people that don't watch live streams to opt out.
They will if we let them because they want the gravy train to keep on rolling! People in the UK are too passive. Can you imagine the outcry if people in the USA were ordered to pay $240 a year to watch live TV broadcasts? They would be out on the streets!