Senior executives from Channel 4 and RTL, the pan-European broadcaster that holds the controlling stake in Five, are scheduled to meet next week to hold discussions about a possible tie-up between the two broadcasters.
The two commercial rivals have made no secret of their desire to forge closer links to help them compete in the multi-channel landscape and tentative discussions have already taken place to assess the logistics of a potential deal (see
Five To Link With Rivals For Survival In Digital Age).
However, Channel 4’s chairman Luke Johnson and its recently appointed chief executive Andy Duncan are understood to have scheduled talks with RTL boss Gerhard Zeiler at the forthcoming Edinburgh Television Festival, which takes place next weekend.
A report in today’s Financial Times claims that Channel 4 is considering a number of different strategic options for the broadcaster, including several alternatives to a merger, or a joint venture with Five. However, both companies have declined to comment on the agenda.
RTL, controlled by German media Bertelsmann, is also understood to be cautious about a tie-up with publicly owned Channel 4, which has a complex public service charter and a remit to provide programmes sufficiently distinct from its rivals.
Channel 4 executives, who oppose outright privatisation, have raised the possibility of creating a trust to oversee the broadcaster’s public service remit, which could also hold a stake in some kind of joint venture with the more commercially focused Five.
Reports suggest that the Channel 4 board has appointed investment bank UBS for advice on developing a five to ten year funding and marketing strategy to enable the channel to withstand increasing competition in the rapidly developing digital market (see RTL Hires JP Morgan To Help Boost Stake In Five).
Duncan, who took over from Mark Thompson following his appointment as BBC director general earlier this summer, is also believed to be conducting a review of the channel’s current strategy. He is expected to authorise an extensive brand relaunch later this autumn (see Channel 4 Appoints BBC Director As Chief Executive).
Channel 4 yesterday announced a massive boost of £20 million to its programming budget in a move that clears the way for more high-quality drama and entertainment series to be shown this year, rather than in 2005 as had originally been planned.
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