It has emerged that the UK government intends to proceed with the privatisation of publicly-owned commercial PSB Channel 4, having suggested in May 2021 that such a move was “on the table”. The news comes as Sir Ian Cheshire has been named as incoming Chair of the broadcaster.
“With over 60,000 submissions to the Government’s public consultation, it is disappointing that today’s announcement has been made without formally recognising the significant public interest concerns which have been raised,” says a Statement from Channel 4.
Channel 4 has engaged in good faith with the Government throughout the consultation process, demonstrating how it can continue to commission much-loved programmes from the independent sector across the UK that represent and celebrate every aspect of British life as well as increase its contribution to society, while maintaining ownership by the public,” it notes.
“Recently, Channel 4 presented DCMS with a real alternative to privatisation that would safeguard its future financial stability, allowing it to do significantly more for the British public, the creative industries and the economy, particularly outside London. This is particularly important given that the organisation is only two years into a significant commitment to drive up its impact in the UK’s Nations and Regions,” it adds.
“Channel 4 remains legally committed to its unique public-service remit,” it confirms . “The focus for the organisation will be on how we can ensure we deliver the remit to both our viewers and the British creative economy across the whole of the UK.”
“The proposal to privatise Channel 4 will require a lengthy legislative process and political debate. We will of course continue to engage with DCMS, Government and Parliament, and do everything we can to ensure that Channel 4 continues to play its unique part in Britain’s creative ecology and national life,” it concludes.
With the UK parliament in recess for Easter, culture secretary Nadine Dorries revealed the goverment’s intentions in a series of tweets.
“Channel 4 rightly holds a cherished place in British life and I want that to remain the case. I have come to the conclusion that government ownership is holding Channel 4 back from competing against streaming giants like Netflix and Amazon,” she said.
“A change of ownership will give Channel 4 the tools and freedom to flourish and thrive as a public service broadcaster long into the future. I will set out the future plan for Channel 4 in a White Paper in due course,” she advised.
“I will seek to reinvest the proceeds of the sale into levelling up the creative sector, putting money into independent production and creative skills in priority parts of the country – delivering a creative dividend for all,” she concluded.
Dyfrig Davies, Chair of TAC, the trade body for TV production in Wales, said: “This is very disappointing news, as there is no evidence to show the need for this drastic move and we believe firmly that a privatisation will take Channel 4 in a more commercial direction, threatening its unique positon in our media ecology.”
“Channel 4 has enabled the development of a thriving independent production sector and analysis shows that in 2019 Channel 4 contributed £20 millon to GVA in Wales and supported 200 jobs. Channel 4’s initial investment in Welsh production companies in North and South Wales has enabled them to grow and develop their businesses. This could be lost if it leaves public ownership and refocuses on redistributing profits to private owners and shareholders.”
“Looking ahead, TAC will seek to ensure Channel 4’s publisher-broadcaster model, which sees it work with so many up and coming production companies across the UK, is preserved. We also need to ensure Channel 4 doesn’t return to a more London-centric commissioning structure. Continuing the ‘4 All the UK’ strategy would secure efforts to ensure greater UK-wide representation in TV and support levelling up.”
