Channel 4 Could Get Slice Of BBC Licence Fee
Channel 4 may finally get a slice of the BBC’s £2 billion a year licence fee if it goes ahead with controversial proposals to take control of the Corporation’s flagship youth station Radio One.
The broadcaster is reportedly considering the radical option as part of a plan to safeguard its financial future. Other ideas have included the exploration of a merger with Channel Five, direct Government funding and complete privatisation.
Channel 4 has made no secret of its intention to develop its existing business and Radio One would fit perfectly the television broadcaster’s youth audience. However, the BBC would be vigorously opposed to the move, which could see it lose a portion of its licence fee.
It is understood that the Radio One idea was submitted along with a number of other options to media regulator, Ofcom, which is currently compiling a report on the future of public service broadcasting, due to be published later this week.
The report, which follows an initial document released in April, will be advisory and in no way final. However, it will influence a green paper due to be published next year and the subsequent act of Parliament that will renew the BBC’s Royal Charter.
Channel 4 has been forced to consider its options because its believes that its terrestrial television business is not viable in the long-term. The broadcaster’s new chief executive, Andy Duncan, has already expressed his intention to collaborate with the BBC and a number of other options are also being considered (see Channel 4 Confirms Intention To Link With BBC).
However, the complete transferral of Radio One to Channel 4 looks unlikely due to the highly complex nature of the deal. Any move to secure the broadcaster’s long-term financial future looks more likely to involve a number of smaller strategic solutions rather than one big fix.
Channel 4 is currently pursuing other interests in radio and recently secured a development deal with UBC Media to launch a new national station sometime next year. Reports suggest the station will be a speech-based offering designed to compete directly with BBC Radio Four (see UBC Announces Plans For Radio With Channel 4).
Channel 4: 020 7396 4444 www.channel4.co.uk
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