The corporation suggested it would be in return for getting more people to pay the annual charge.
In recent years, the number of British households paying the licence fee has gone into significant decline.
Which has since prompted the BBC to rethink its funding model.
“The choice here is clear”
Director General Tim Davie said: “The choice here is clear: back the BBC or watch it decline. The status quo is not an option.
“Clear decisions are needed to ensure the BBC is funded sustainably and fairly so it can continue to deliver, both for audiences and for the country.”
The corporation noted 94% of adults use its services each week, but the number of households paying the licence fee has dropped to 80%, with the downward trend set to continue.
The corporation confirmed it will have to cut spending by another £500m over the next two years because of its falling income and rising costs.
It has been suggested that the BBC move to a model funded by advertising, but the corporation points out this would also lead to a “different BBC.”
They added: “There are well-founded and longstanding concerns about a full advertising model,” including the fact that it would draw revenue away from other broadcasters, including public service broadcasters (PSBs).
In response to the suggestion in the government Green Paper that more households are required to pay but each paying less, the BBC said: “We welcome this kind of radical thinking.”
The BBC also said it will endeavour to deliver more efficiencies and value for money, but that will not be enough to plug the shortfall in funding, meaning an overhaul of the licence fee is necessary.
It proposes that iPlayer could be opened to other PSBs, which include ITV and Channel 4, and their commercial services, while BBC Sounds could also be opened up to UK third parties.
The move could allow shows such as The Great British Bake Off and Gogglebox to be available on iPlayer.
The response said: “This could help ensure the UK retains a streaming platform that competes with global services and remains a first choice for audiences.”
One commentator on X, formerly known as Twitter said: “Eyyyy listen to this, the BBC have now said if more people pay it they’ll make it cheaper! Hysterical.”
