A report into Channel 4’s finances, commissioned by Ofcom, has said that the broadcaster is likely to be loss making after 2012.
According to the study, carried out by consultants LEK, the Channel’s recent strong commercial performance will deteriorate in the near and medium-term.
It gives four main options for the future, including the possibility of significant intervention to make sure that the channel’s funding remains secure.
LEK said that even after taking into account proposed cost saving measures and contributions from other commercial ventures, Channel 4 is likely to be loss making after 2012.
According to the consultants, the broadcaster will in the future have to choose between different types of investment to support its commercial health and its delivery of public service content.
Ofcom has requested further evidence from interested parties so that it can arrive at the most appropriate response to potential intervention. The deadline for submissions is May 4 2007.
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