Eighteen years ago, Professor Sir Alan Peacock made radical proposals in a report commissioned by the then Government on the future funding of the BBC. These proposals involved making subscription to the BBC voluntary but providing a fund that would finance public service broadcasting on a competitive basis. The report was widely acclaimed, as its proposals would help ensure quality programming within the context of a competitive broadcasting market. It is widely recognized that the technology is now available to make Peacock's vision a reality. In the context of the Government's review of the BBC's charter and the broadcasting regulator's review of public service broadcasting, this timely contribution once again puts the existing model of broadcasting to the test. Peacock shows how his radical ideas can now be implemented in practice. He also proposes a new corporate model for the BBC that will make it independent of the state but not fully commercial.