Andy Duncan: C4/BBC Worldwide deal is weeks away

Channel 4’s chief executive Andy Duncan has told MPs that he expects to agree a partnership deal with BBC Worldwide within weeks.

Speaking to the House of Commons culture, media and sport select committee yesterday, Duncan said he is hopeful that an agreement between the two broadcasters would be signed off before the government publishes its final Digital Britain report on June 16.

“The ambition of both sides would be to get some sort of broad agreement before that report. Discussions have been going well,” he said.

Duncan refused to reveal details of the up-coming partnership but said: “In essence, it will be a headline understanding of how a partnership would work. The core ambition of what we are trying to do is protect the public service output.”

However, he did hint that the UKTV pay-TV channels, which include Dave, Watch and Gold, could be part of the deal – “They could have a role to play, but it doesn’t depend on it,” Duncan added.

Channel 4 has been keen to do a deal with the BBC’s commercial arm since the interim Digital Britain report was released in January, as a means of solving its £150 million funding deficit (see Broadband for all by 2012).

Lord Carter’s interim report backed a possible tie-up between Channel 4 and BBC Worldwide, initiating speculation over a potential partnership, despite Channel Five expressing an interest in merging with Channel 4.

At the time, Carter said he would not make a firm comment on Channel 4 until the final report in June, but he did say that it “makes sense to begin by looking at public sector bodies Channel 4 and BBC Worldwide”.

After the committee meeting, Duncan said: “We are very focused on the BBC partnership. Any partnership would be substantial in scale. That is where the focus is. I think BBC Worldwide are very positive, although there is some way to go.”

However, Channel 4’s chairman, Luke Johnson, who also appeared before the committee, said the broadcaster would continue by itself whatever the outcome.

“We will continue whatever and we will manage as best we can with self-help but over time the damage would become material,” Johnson said.

Duncan added: “We will do the best we can – we are not in danger of going bust – but there will be real damage to our creative output. Now is the moment for action.”