Channel 4 Loses Funding Fight

Channel 4 heard yesterday that the government does not intend to alter its funding formula until the scheduled review in 1997. Stephen Dorrell, heritage secretary, wrote to the chairman of Channel 4 saying it would “be wrong” to amend the channel’s funding before then.

Dorrell has decided to wait until then to assess the issue because it will be clearer whether C4 will require financial support from ITV companies towards the end of its 10 year licence, as by then it will face increased competition from new services such as C5 and digital television.

C4’s Michael Grade said he would fight on;”This isn’t the end of the matter.” ITV praised the decision, saying “This decision will help maintain the stability and strength of British broadcasting.”