Poll: Would you be willing to pay more for the BBC?

The crossbench peer said everybody paying something results in producing "great services for a lot less" than if a subscription model or other funding method was used.

He said the £145.50 charge still has another 10 years of life, claiming the corporation's audience believes the case for the fee has strengthened.

Speaking on BBC1's the Andrew Marr Show, Lord Hall also said a "household tax" - as proposed by the Culture, Media and Sport Select Committee - is a "very interesting idea".

He added there is broad agreement for the licence fee to be reformed to ensure "everyone is paying equally for it and I would go along with that".

Lord Hall said the type of reform is up to the Government to decide and the BBC to debate, adding: "It could be a household tax, I don't know whether that works or not. We suggested ways of reforming it so whatever way you consume and use BBC services you can pay for it and I think somewhere in there lies a solution."

The peer said he did not believe the corporation was there to exist as a "market failure" public service broadcaster - adding this view is shared by audiences.

He explained: "Our audiences, when you ask them, actually think that the case for the licence fee as a method of funding the BBC has gone up and has not gone down. That's really important.

"And they believe in a high quality BBC that's producing excellent programmes right across a broad range of genres."

Told the licence fee is regressive and anachronistic, Lord Hall said: "(Culture Secretary John Whittingdale's) own report published before the election said far from the licence fee being anachronistic it's actually got 10 years of life left in it at least."

He went on: "Beyond that Andrew, you and I sitting here 10 years ago had no idea what an iPad was, had no idea about Netflix, had no idea about Spotify - I'll go along with the argument that's it got 10 years life in it.