Difficult Future For Channel 4
An Ofcom commissioned report into Channel 4’s finances says that the broadcaster is likely to be loss making beyond 2010.
The study’s central forecast suggests that Channel 4’s recent strong commercial performance will deteriorate in the near and medium-term.
Carried out by consultants LEK, the study gives four main options for the future, which include the possibility of significant intervention to ensure the Channel’s ongoing funding stays secure.
It said that even after taking into account cost saving measures and contributions from other commercial ventures, the broadcaster is likely to be loss making beyond 2012.
LEK added that Channel 4 will increasingly have to decide between different types of investment to support both its commercial health and delivery of public service content.
Ofcom has asked for further evidence from interested parties in order to arrive at the most appropriate response to potential intervention.
The deadline for submissions to the regulator is May 4 2007.
Ofcom has also published an analysis of Channel 4’s delivery of its public service broadcasting remit.
It said that the broadcaster consistently meets and, in some cases, significantly exceeds its licence obligations, although hours of first run original programmes have decreased.
Ofcom: 020 7981 3040 www.ofcom.org.uk