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Advertising is not exactly doing well in terms of media at the moment through.

Exactly, so moving to an advert funded model is not going to work as it would end up distorting the market. Currently the BBC competes with commercial broadcasters by broadcasting populist shows. As for Pay per view, no one will really be interested in paying by the programme. Reducing the number of channels and increasing the quality of output might make a premium subscription system work, similar to how Sky Cinema and HBO works in the US with the content still running without adverts, people would probably be happy paying up to £20/month.

As for digital, for streaming it has iPlayer however, currently the conditional access is that you honestly click the button that says you have a licence fee, its not validated so your bbc.com account is not linked with the TV licensing database, so its actually very easy for evaders to currently watch BBC content. Whatever system is used to fund the BBC in the future will need to tie into how it is funded and then enforced.

For News, It needs to enter into commercial terms with various tech companies to licence its content, as at the moment it's news, very easy for these services to pull in and benefit from the content.

News, Parliament and the kids channels provide PSB, so they should be continued to be funded, the general channels however should be rationalised and refocused to provide better value. iPlayer exclusives could reach native digital audiences who wouldn't touch the linear channels. How about merging iPlayer and sounds into a single BBC app.

Its business future is programming, not the technical side of things (R&D costs), with IP everything is being levelled, operating transmission infrastructure is outdated and archaic. everything is heading to an IP future so a transition has to be made.