BBC Trust Chairman hits back at Worldwide & Channel 4 merger idea
Sir Michael Lyons, BBC Trust chairman, has hit back at the proposed merger between BBC Worldwide and Channel 4, saying its a “fanciful idea that distracts from what is actually doable”.
The BBC released a statement yesterday, suggesting a potential partnership between BBC Worldwide and Channel 4, as a means to help secure the future of UK public service broadcasting (see Channel 4 could merge with BBC Worldwide).
However, under the BBC’s proposals Channel 4 would only receive a stake in the corporation’s commercial arm, rather than a majority share.
Lyons said: “The proposition of Worldwide being taken away from licence fee payers who have invested in it is pretty extraordinary.
“Worldwide depends on the BBC brand and the stream of intellectual property rights. Take them away and it is not the same company. This distracts the sector from finding some solutions rather than [what is] pie in the sky,” he added.
Lyons confirmed: “There are no discussions going on within the BBC about the transfer of Worldwide to Channel 4.”
Mark Thompson, the BBC director general, added: “There is an artery of value to Worldwide from the BBC. You cut that and you end up with a catastrophic loss of value.
“It doesn’t really pass more than five or 10 minutes of scrutiny before you see the gaps in it,” he said.
In July, Ofcom rejected the idea of giving Channel 4 a stake in BBC Worldwide to help make up its funding shortfall, saying it would be “too complicated” (see Channel 4’s Proposed Share In BBC Worldwide Is Dismissed).
However, if the scheme were to go ahead, it would avoid the need for top-slicing the BBC’s £3.4 billion licence fee to secure the future of Channel 4, which culture secretary Andy Burnham said was a real possibility (see Culture secretary will not rule out top-slicing licence fee).
However, both Lyons and Thomspon rejected the claims, saying the argument for top-slicing the licence fee had now subsided.
Lyons said: “No one is seriously arguing for top slicing in any of the responses [to Ofcom’s consultation].”
“Talking to people, top slicing has rather drifted away as an idea,” Thomson added.
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