Airey: Channel4/Five merger credible solution to funding gap

Five chief executive Dawn Airey is surprised at the hostility towards a Channel 4/Five merger, calling the proposal a “credible solution” to Channel 4’s funding gap.

In an interview with the Sunday Times, Airey also voiced doubts as to whether a Channel 4 partnership with BBC Worldwide would be of long term benefit to the broadcaster.

“Merging with BBC Worldwide wouldn’t solve 4’s problems in the long term,” said Airey.

“Five and 4 makes sense. It would be a public-private partnership – what this government has been all about.”

She forecast that a merged Channel 4/Five, in which the government would be a majority shareholder, could produce more than £100 million in synergies, from deep cost cuts, cross-promotion and initiatives including a new children’s channel.

“I am genuinely surprised at the hostility to [Five owner] RTL,” added Airey. “We have offered a credible solution and I am surprised that 4 has not been more curious.”

According to the Sunday Times, the BBC is proposing that Channel 4’s commercial assets, including digital channel E4, music venture Box TV and 4’s headquarters, are pooled into a new operating company with BBC Worldwide.

It would be wholly owned by the BBC but pay 50% of its dividend to fund the core public service Channel 4.

The BBC believes Five could be added to the merger at a later date.

Five: 020 7550 5555 www.five.tv