Channel 4 Must Focus On PSB Future
Ofcom has said that Channel 4 must address the way in which it will approach its future role as a public service broadcaster and also the ways in which it will be held accountable to its remits.
Today’s statement comes after the regulator commissioned a report into Channel 4’s finances which found that the broadcaster is likely to be loss-making beyond 2010 (see Difficult Future For Channel 4).
However, today’s statement said that there is no immediate pressure on the broadcaster’s financial situation, therefore the regulator ruled out funding intervention in the short-term.
It added that, for the period between 2010 and 2012, when financial pressure on the broadcaster is expected to intensify, options for support should be looked at.
Ofcom said: “The Channel 4 board should significantly develop the ways in which it assesses the broadcaster’s remit delivery and public service contribution ahead of this period of financial uncertainty.
“Though Channel 4’s ability to deliver in the future is likely to come under sustained pressure from 2010 onwards, there is no apparent need for immediate intervention.
“However, work to evaluate potential interventions in the long-term should begin now. Ofcom will assess a full range of options post 2010 as part of its next statutory review of public service broadcasting which will begin in the autumn.”
Ed Richards, Ofcom chief executive, added: “We are concerned that Channel 4 may not be able to fulfil its public service purpose in the future. The next phase of our work will be to ask what Channel 4’s purpose should be in the longer term, and what the best way is to achieve it.”
Andy Duncan, Channel 4 chief executive, said: “Ofcom’s report moves us closer to achieving our aim of underpinning our public service model for the digital age and maintaining C4 as an organisation focused on public purposes delivering the same impact and public value as it does today.”
Channel Four: 020 7396 4444 www.channel4.com Ofcom: 020 7981 3040 www.ofcom.org.uk