This report responds to the current crisis in public service broadcasting, particularly in the advertiser-funded television sector. This has been caused by three factors: (1) the move from analogue to digital broadcasting means that established forms of support are losing value; (2) viewers are increasingly taking advantage of technological developments that provide alternatives to conventional broadcasting, such as the internet and the many commercial channels; (3) the speed and severity of the current economic recession. The Committee believes that the commercially-funded public broadcasters - ITV, Channel Four, Five and BSkyB - should continue to provide an alternative to the BBC, which should not become an even more dominant provider of public service programming. Market forces will not resolve the crisis and intervention is justified to ensure sufficient public service provision that the market will nor provide free for the public. There is a need for financial clarity on the financial position of all the public service broadcasters, and Channel Four's position should be independently reviewed. A partnership between Channel 4 and BBC Worldwide, rather than a full merger, would be a quicker means of making extra resources available to Channel 4. The BBC's other partnership proposals are welcomed. An element of contestable funding should be introduced, such funding to come from: (a) the underspend on the digital switchover; (b) continuance of funding from the licence fee after 2012 when the switchover programme ends; (c) the use of at least part of analogue spectrum revenue after 2012. Ultimately, part of the licence fee could be used to support public service content provision outside the BBC.