Lord Carter: C4/Five tie-up is still possible

Communications Minister Lord Carter has confirmed that a potential tie-up between Channel 4 and Five “is not off the table”.

Speaking to the House of Lords Communications Committee today, Carter revealed that a number of commercial companies have approached the Government with ideas about creating a new public service broadcaster to rival the BBC.

Last month, Carter proposed that Channel 4 should be at the heart of a separate public service broadcasting entity, outside of the BBC, in his long-awaited Digital Britain report.

However, he also suggested that a partnership with BBC Worldwide could underpin such a broadcaster.

Five’s chief executive Dawn Airey has continually supported a Channel 4/Five merger, however, Channel 4 has expressed reluctance to tie-up with the commercial broadcaster (see Airey backs Five/C4 merger).

Airey said: “It would offer so many benefits. We’re not oil and water as some people have said, our businesses are the same. However, it would a reluctant marriage on Channel 4’s part. We can’t force it and we know that Channel 4 are opposed to the idea.”

Speaking at MediaTel Group’s Future of Television seminar last week, media journalist Ray Snoddy said a merger between the two broadcasters is the only solution to Channel 4’s £150 million funding deficit – “it’s the least bad option” he said (see “It’s only Television”).

“They need to set up a trust to protect the quality and diversity of Channel 4 programming and then take out back room costs to make a Channel 4/Five merger work,” Snoddy added.

Today, Carter said the planned PSB entity should “mainly be publicly-owned and that it will have a big PSB remit” but said he can also imagine private capital playing a part in the venture.

Carter said that while there “may be merit” in a partnership between a revised Channel 4 and BBC Worldwide, “we are also of the view that there may be private parties involved”.

He also suggested that the Government is opposed to privatising Channel 4 as solution – “Why would you sell a media asset that is declining in value in the worst [media and economic] market in years?” he asked.

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