Airey backs Five/C4 merger
Five chief executive Dawn Airey backs the potential merger of Channel 4 and Five, despite Channel 4’s continued reluctance.
While the future of Channel 4 continues to stimulate debate among the industry, Five’s chief Dawn Airey has confirmed her positive view on the potential merger of the two broadcasters.
Speaking to a Lords Committee yesterday, Airey said it “would be a very good solution” for both Channel 4 and Five, and would solve C4’s funding problems, which a partnership between C4 and BBC Worldwide would not.
Airey said that a merger is a good option as the two broadcasters are in the same position, so it would offer “significant synergies”.
“It would offer so many benefits,” Airey said. “We’re not oil and water as some people have said, our businesses are the same.”
However, Airey confirmed that it would be a “reluctant marriage” on Channel 4’s part, who has continually expressed a preference to partner with BBC Worldwide.
Airey said: “We can’t force it and we know that Channel 4 are opposed to the idea. We haven’t had any talks with Channel 4 as yet, despite being open to them. However, RTL has spoken to Luke Johnson, Channel 4’s chairman.”
“We’re not hostile to a possible partnership between Channel 4 and BBC Worldwide, but it doesn’t solve the funding gap. There are some benefits and synergies but not enough to meet the sum required,” she added.
In September last year, Ofcom warned that Channel 4 faces a £100 million a year funding gap by 2012 because of the “external situation” in the market (see Ofcom Warns That Channel 4 Faces £100m Funding Gap).
Ofcom’s PSB blueprint, published last week, recommended that Channel 4 “create a strong, alternative public service voice to the BBC,” preferably through partnerships, joint ventures or “even mergers” (see Ofcom rejects top-slicing the BBC’s funding).
The report said Channel 4 should develop a “partnership with another commercially owned broadcaster, such as Five,” competition issues notwithstanding, to counter its funding shortfall.
Airey added that parent company RTL wants Five to be bigger, meaning that a merger with Channel 4 is a viable option for the company.
“A merger is a high priority for us at the moment. We’re gin & tonic as far as we’re concerned – we just need to persuade Channel 4,” Airey said.
Although Airey expressed Five’s intention to continue as a public service broadcaster provider, she welcomed Ofcom’s recommendations to reduce the broadcaster’s current PSB obligations.
“We want to maximise profits but retain our PSB status,” Airey said. “Five wants to continue to produce UK-originated programming as well as factual, news and children’s content but less extensively. Being a public service broadcaster is part of our DNA.”
Five: 020 7550 5555 www.five.tv