Airey claims government “recognises” value of C4/Five merger

Five’s chairman and chief executive Dawn Airey claims that the government “has begun to recognise” the potential value of a merger between Five and Channel 4.

Speaking at the Royal Television Society last night, Airey said that she believes the financial benefits of a tie-up between the two broadcasters would go well beyond just solving Channel 4’s £150 million funding shortfall.

Airey also claims that a merger would guarantee national news bulletins for Scotland, Wales and Northern Ireland.

She added that both broadcasters have a strong complementary public service broadcasting ethos and have seen a regular cross-over of staff over the years.

“That’s hardly mixing oil and water,” Airey said. “The differences we have are also complementary strengths, which is something the government has begun to recognise.”

Five estimates that the potential savings generated from a merger would be “so substantial they would not only plug Channel 4’s much-talked-about funding gap but ensure the sustained delivery of public service content across all platforms”.

Airey also promised to target the “lost generation” of British broadcasting and build on Channel 4’s digital investment 4iP.

Airey’s recent comments mirror some she made earlier on in the year regarding a potential deal between Five and Channel 4.

In January, Airey confirmed to the Lords Committee that she was keen to back a merger, which she said “would be a very good solution” for both broadcasters (see Airey backs Five/C4 merger).

At the time, she said: “It would offer so many benefits. We’re not oil and water as some people have said, our businesses are the same.”

However, Channel 4 has continually expressed reluctance over a merger with Five, despite facing a serious funding deficit, and has instead favoured a partnership with BBC Worldwide.

Lord Carter’s interim Digital Britain report fuelled initial speculation over a possible tie-up between the BBC’s commercial arm and Channel 4 (see Broadband for all by 2012).

Weeks after the report was published, BBC Worldwide’s chief John Smith hinted that the broadcasters were joining forces to create ‘4 Worldwide’ – a joint venture that would comprise of Channel 4’s E4, More4 and Film4 digital channels with some elements of BBC Worldwide (see BBC Worldwide and C4 join forces).

However, Airey poured water on the idea and said that a BBC Worldwide/Channel 4 deal “doesn’t solve the funding gap”.