Conditional access is also not really reconcilable with universal access which the BBC is required to provide.
The comparisons with Netflix, HBO, et al. are completely erroneous. They are competing in different markets and often arbitraging back catalogues in order to conquer new markets. Yes, they produce some great stuff, and yes they're trailblazing new methods of distribution but in doing having to sign up for Netflix to be able to watch Dr Who in English in Germany is an example of market failure.
Location dramas are hugely expensive but so is maintaining a series of local studios bringing the news (and other stuff) from across the country. 24 hours news cycles and international news channels are increasingly dominated by American stories. Whether it's the whether or some more of the morons shooting each other.