Making the BBC a paid subscription service is an option in the long-term, says Culture Secretary John Whittingdale.
But he said while this had some advantages, the technology was not yet widely available in homes.
Mr Whittingdale said the three options for BBC funding in the shorter term were a reformed licence fee, a household levy, or a hybrid model.
The Secretary of State also said a review had found the decriminalisation of licence fee evasion would not be appropriate in the current system, but it would be considered as part of the review of the BBC’s charter.
Mr Whittingdale was setting out the contents of a Green Paper on the future of the BBC in the House of Commons.
He said a decision had to be taken over whether the BBC continued trying to do “all things” or took on a more “precise” mission.
“The upcoming charter review will look at whether the scale and scope of the BBC is right for the current and future media environment and delivers what audiences are willing to pay for,” he told MPs.
TVLR expected the Tories to bottle it and notice they completely forget the free to air television meaning the abolition of the BBC TV Licence would have no impact on the majority!