No end to C4 Funding “Safety Net”

An early end to the funding safety net for Channel 4 was ruled out by the national heritage secretary, Stephen Dorrell, yesterday. Channel 4 says the formula in place could cost it up to £500m over the next ten years.

The existing act requires all Channel 4 revenue above 14% of total non-satellite television to be divided: 50% to ITV; 25% to C4; 25% to a reserve fund. If revenue is less than 14% C4 is compensated by the reserve fund and the ITV companies down to a level of 12%. last year C4 paid £38.2m to ITV; this year it is likely to pay £50m.

A formal review is not scheduled until 1997, and this would now seem to be the earliest date at which the act could be scrapped.