NewsLine Column: Four Plus One Leaves Five
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Widespread speculation over the possible merger between Channel 4 and Five finally fizzled out at the Edinburgh Television Festival when Channel 4 boss Andy Duncan confirmed that he is looking instead to forge links with the BBC. NewsLine editor, Gareth Jones, looks at the possible implications of his decision…
There’s always one big issue that dominates the Edinburgh Television Festival, from the keynote speeches to the late night sessions in the George Bar. This year it was the proposed merger of Channel 4 and Five to form a terrestrial heavyweight capable of competing with the multi-channel big-boys.
Just a couple of weeks ago it looked as though Channel 4’s flirting with the bigwigs at Five was going to pay off. Both channels appeared more than keen to jump into bed together in what was all set to be the start of a very long and fruitful relationship. However, after a quick fumble under the covers, Channel 4 seems to have gone off the whole idea and is making an Olympic dash for the door.
At first glance a merger of Channel 4 and Five looks like an attractive option for both broadcasters. The prospect of significantly reduced back office costs and a subsequent increase in onscreen investment is enough to get even the most level-headed television boss hot under the collar.
Bringing the two sales houses together to give them more clout against an all-powerful ITV also makes sound commercial sense for those involved. A combined entity, controlling more of the airtime sales market, would have greater bargaining power and therefore the ability to command higher prices from advertisers.
However, there are some major drawbacks to a deal of this magnitude and Channel 4’s new chief executive, Andy Duncan, appears to have woken up to them in a cold sweat. He has made it abundantly clear that he is not prepared to rush into anything advocated by his predecessor before considering all the options for future-proofing his channel.
The announcement that the former BBC marketing director is looking instead to his old chums at Broadcasting House as potential bedfellows seems to have sent a sigh of relief around the industry. There had been a significant amount of unease about a partnership between a state-owned broadcaster with a strong public service remit and a commercially driven upstart once famed for ‘football, films and fucking’.
These differing brand values could also have thrown up issues for advertisers attempting to deal with a single sales point. Channel 4 trades at a premium with brands keen to reach upmarket ABC1s and lucrative 16 to 34 year-olds. However, Five’s downmarket image makes it more of a cut-price option for those targeting different demographics.
A partnership with the BBC would be a much more viable option, allowing Channel 4 to side step some difficult regulatory hurdles, whilst remaining faithful to its core public service remit. The two state-owned broadcasters could cut costs by working together in areas such as education and new media, in a match representing something more akin to a long-term relationship and less like a one night stand.
However, Channel 4 has been doing the rounds a bit lately and may still choose to flutter its eyelashes at ITV, BSkyB, or any number of other broadcast rivals. Five’s director of programmes, Dan Chambers, seemed to sum up the situation when he said: “It looks as if the foreplay will go on forever – but I don’t know if it will actually lead down the aisle.”
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