The article outlines the current structure and organization of public service broadcasting in Italy and explores various options for its future development. With moves towards digital broadcasting, RAI is set to enter a discrete next stage which will bring new challenges and will inevitably lead to a revision of its public service remit. While it is currently unclear how far Italian public service broadcasting will change, there is evidence that members of the government and senior RAI managers wish partially to privatize core elements of its public service. Focusing on the development of television, the article addresses some of the salient issues facing RAI and other public service broadcasters who have become the victims of a pervasive disenchantment with public provision of goods and services.