The Government has eased off its plans to fully privatise Channel 4, but could instead force the broadcaster to pay a dividend to the Treasury, sell a minority stake to a strategic partner, or introduce National Audit Office scrutiny of Channel 4’s accounts.
According to a report in The Daily Telegraph, Channel 4 will escape full privatisation following an intervention from Downing Street. However, the proposals still on the table are all designed to ensure the broadcaster will deliver better value for money for the taxpayer.
One of the more likely scenarios is selling a minority stake to a private sector partner such as BT.
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Sources told the Telegraph that full privatisation had been rejected because senior ministers feared a backlash from the creative sector if Channel 4 was sold to the highest bidder – most likely a US outfit such as Viacom or the Discovery Network.
The news comes as Channel 4 reported strong revenue figures for 2015, with record corporation revenues of £979 million – boosted by a 30% increase in digital revenues – and record original content investment of £455 million.
Over the year, Channel 4’s main channel recorded a 12.9% peak-time portfolio share, while online platform All 4’s registered viewers surpassed 13 million.
“Channel 4 had a record impact on audiences and the UK’s creative sector in 2015 with our investment in original content, our commercial revenues and, critically, the delivery of our public service remit, all at their highest ever levels,” said chief executive David Abraham.
“We expect this impact and growth to continue in 2016 and, as a wide range of independent experts have concluded, our focus on both creative and commercial innovation has positioned us very strongly for the future.”
