Channel 4 Looks To Ofcom For Commercial Freedom
Channel 4 chairman Luke Johnson is this week finalising a landmark submission to media super-regulator Ofcom on the future of the state-owned broadcaster in the multi-channel landscape.
Reports suggest that Channel 4 executives believe the broadcaster will find it increasingly difficult to fulfil its public service remit in a more competitive environment without fundamental changes to its structure and funding.
Johnson has already drafted a wide-ranging document containing up to ten different proposals for the broadcaster, which is currently exploring the logistics of a potential merger with commercial rival Five (see Channel 4 To Push On With Possible Merger Plans).
According to the Independent On Sunday, these so-called ‘self-help’ options would leave Channel 4 under state ownership, but would lift some of the Government imposed restrictions to help it compete on a more commercial basis.
Under the proposals, the constraint preventing Channel 4 from owning more than 5% of another broadcaster would be removed, allowing it to press on with plans to buy shares in Channel Five, or another rival broadcaster.
It would also be cleared to own shares in independent production houses in a move that would give it more flexibility to pursue joint programming ventures. Another option would be to set up a non-for-profit trust, or to seek direct funding from the Government to pay for programming.
Channel 4 will also put forward the idea of privatisation, but Johnson has already make it public that he does not favour this idea, given that it would a long and drawn-out process taking months if not years (see Channel 4 Confirms Merger Discussions With Five).
Johnson and his board of directors have not yet decided which proposal to recommend to Ofcom, but Channel 4 is expected to present the document to the media-regulator sometime within the next few weeks.
Media analyst, Graham Lovelace, said: “Channel 4 has held on to its peak-time audience share of just under 10%, while BBC One and ITV1’s have declined. It generates its revenues from advertising, but its ability to do that is limited by its remit to produce innovative and distinctive programmes.”
Earlier this month Channel 4 agreed to release outgoing chief executive Mark Thompson from his contract early so that he can leave to take up his new position as director general of the BBC (see Channel 4 Releases Thompson To Join BBC Early).
Channel Four: 020 7396 4444 www.channel4.co.uk
Recent Television Stories from NewsLine Freeview Now In An Estimated 4 Million UK Homes Ofcom Investigating Big Brother As Over 100 Complain Advertisers Welcome Report On Contract Rights Renewal
Subscribers can access ten years of media news and analysis in the Archive