The TV licence currently costs £145.50 per year
The TV licence does not have a long-term future and is likely to be replaced by a new levy within the next 15 years, a group of MPs has said.
The fee is "becoming harder and harder to justify" given changes in the media, according to the House of Commons Culture, Media and Sport Committee.
The MPs suggested every household could pay a new compulsory levy instead.
The BBC does not agree that the fee will have to be replaced, but accepts it will probably have to be modernised.
The select committee's proposals were made in a new report about the future of the BBC.
Committee chairman John Whittingdale said: "In the short term, there appears to be no realistic alternative to the licence fee, but that model is becoming harder and harder to justify and sustain."
In light of changing technology and audience habits, the committee said "we do not see a long-term future for the licence fee in its current form".
Any "profound changes" - such as abolishing the licence fee - should not be rushed, the report said. But it did say the BBC "must prepare for the possibility of a change in the 2020s.
"We recommend that as a minimum the licence fee must be amended to cover catch-up television as soon as possible."
It should also no longer be a criminal offence to avoid paying the licence fee, the report said.
The planned BBC One +1 channel does not represent "public service value", the committee said
The licence fee currently costs £145.50 per year for every household where people watch or record live TV.
A TV licence is not required to watch catch-up TV, using services such as the BBC iPlayer.
One option to replace the licence fee would be to make some BBC services available by subscription.
But the committee said choosing which programmes remained available subscription-free would require careful thought.
The best alternative to the licence fee, the report concluded, would be a compulsory broadcasting levy paid by all households, regardless of whether they watch TV, or how they watch.
Such a system was introduced in Germany in 2013 and would do away with the need to detect and prosecute those who avoid buying a TV licence, the committee said.
Other proposals made by the committee include:
Mr Whittingdale, the Conservative MOP for Maldon, said the BBC had suffered from "a succession of disasters of its own making" in recent years, yet remained "a widely admired and trusted institution".
The committee's report will feed into the negotiations over the corporation's next royal charter, which will begin after the general election in May.
'Thoughtful and considered'
A BBC spokesperson said: "This report confirms the importance of the BBC in national life and recommends maintaining and modernising the licence fee, something we have said is necessary.
"We're grateful to the committee for endorsing our record for efficiency and maintaining the quality of programmes and services, and note members overwhelmingly voted against moving to a subscription funding model."
A statement from the BBC Trust, which was set up in 2007 to be the corporation's arms-length regulator, said the report highlighted "a number of issues and challenges that the Trust recognises and that we are seeking to address".
It added: "We agree that there must be robust internal governance and independent regulatory oversight of the BBC. Charter Review will be when this and other issues are debated thoroughly, but we welcome this thoughtful and considered early contribution."