MPs warn of Channel 4’s increasing market impact

The growth of Channel 4’s non-public service broadcasting (PSB) activities could increase its market impact significantly, according to a report from MPs.

The Culture, Media and Sport Committee (CMSC) said that the channel’s expanding remit needs to be addressed before the Digital Economy Bill – which updates the terms of Channel 4’s remit to encompass PSB content on all media platforms – passes through parliament.

“The extension of Channel 4’s primary functions beyond the core PSB television channel, along with the growth of its non-PSB activities, means the market impact this public organisation has might increase significantly, raising questions about how this impact should be monitored and controlled.

“We recommend that the government consider and address these issues now, during the passage of the Digital Economy Bill,” the report said.

It added that Channel 4’s existing governance framework might need to be adapted to better deal with its new status.

“While the BBC and Channel 4 retain different funding models, the evolution of both as publicly-owned, not-for-profit multichannel, multiplatform public service broadcasters, benefiting from direct and/or indirect public funding, calls into question the rationale for maintaining dramatically different governance systems.”

The CMSC report also criticised Channel 4’s reliance on non-PSB programming, spending just £153 million on PSB genres such as news and drama – a fraction of its total £516 million spend on programming and other core content for its main channel.