Channel 4 Outlines Public Funding Proposals To Ofcom
Channel 4 has outlined its vision for the future, calling on Ofcom to provide partial public funding to ensure its continued existence in a digital-only television environment.
The broadcaster’s plans to increase its public service broadcasting with funding from the Government were detailed in a written submission to the consultation process for Phase 2 of Ofcom’s Review of Public Service Television Broadcasting, which ended yesterday.
The document, entitled Channel 4’s Future Strategy – Countdown to a Fully Digital Britain, outlined the three ways in which the broadcaster believes it can fill the anticipated £100 million shortfall in funds created by the digital switchover and evolve its PSB output.
According to the broadcaster, a mix of indirect regulatory support, collaborations and partnerships with the BBC, and direct and/or indirect public funding will enable it to plug any forthcoming funding gap. The broadcaster has also stated that it will continue to “aggressively pursue” self-help measures, including increasing efficiency and creating new revenue streams through its commercial arm, 4 Ventures.
Commenting on the plans, Andy Duncan, Channel 4’s chief executive, said: “I think we’re developing a hugely exciting vision of Channel 4’s public service role going forward and of how we can continue providing vital competition to the BBC as ITV and Five’s PSB contribution inevitably declines.”
He added: “To a very large extent this vision will be delivered through generating our own commercial income and self-reliance. But we believe we will also need a limited but appropriate amount of external support and we want to work with Ofcom to put measures in place now that will allow us to build towards a fully digital Britain with confidence rather than face a long period of further uncertainty.”
Amongst the regulatory support which Channel 4 believes would help it in the future is the gift of additional digital terrestrial spectrum, for example, if the Government decides to release extra frequencies to broadcasting when digital switchover is achieved. The broadcaster has also requested guaranteed exemption from Government plans to introduce spectrum charging and appropriate access to new media rights for its programming.
In addition, the broadcaster has revealed that discussions are underway with the BBC on a number of potential areas of collaboration, including joint ventures in new media and education and commercial tie-ups, including international distribution and consumer products.
Channel 4 has also proposed that the BBC meet its additional digital distribution costs during the period of switchover, citing the BBC’s willingness to take a financial lead in achieving switchover as justification for its request.
If Channel 4 was awarded public funding it would be possible to supplement its non-programming costs, such as distribution and transmission costs, as well as funding developing content and services across new media platforms.
On the proposals, Andy Duncan said: “All the other terrestrial broadcasters either benefit from or are effectively fully cushioned against the impact of digital switchover. We are working very hard to make sure that the same is true of Channel 4, allowing us to continue being Britain’s bravest and most innovative broadcaster, making a significant contribution to the creative and cultural life of this country.”
The formal request for public funding follows speculation earlier this month that Channel 4 would call for assistance from the Government to help it prepare for the financial strain of digital switchover (see Channel 4 To Seek Public Funding To Combat Sliding Share). The move also underlines the end of merger possibilities for the broadcaster, which pulled out of talks with rival broadcaster Five earlier this week (see Channel 4 Walks Out On Merger Talks With Five).
Channel Four: 020 7396 4444 www.channel4.com
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