C4 issues formal warning against privatisation

Channel 4 has warned the government that privatisation could cause “irreversible” harm to audiences and the economy, and has set out a number of measures that could strengthen the broadcaster other than a sale. 

Publishing its 53-page submission to the DCMS’ ownership consultation, C4 said that a change to its ownership could have a permanent effect on investment and jobs in the UK’s creative sector. 

It urged the government to consider instead a range of levers to boost its sustainability, including: guaranteeing prominence on digital platforms and reviewing the commercial relationship it has with platforms; reviewing alternative means of the broadcasters accessing capital; and modernising both its licence obligations and public service remit.  

“We believe these measures could have a material impact on C4’s successful transition to a digital first organisation,” it said.  

“The evidence suggests that continued public ownership would create the right conditions not only to overcome the audience and competitive challenges the government has rightly identified, but also ensure the PSB in the UK continues to thrive.” 

C4 said it has “powerfully demonstrated” its ability to provide “unique, socially valuable and deeply resonant content” including its recent coverage of the Tokyo Paralympics and Emma Raducanu’s US Open win, as well as the Black to Front special day.  

“A private owner would have a natural and legitimate incentive to seek both to dilute the commercially onerous part of the channel’s remit and scale back additional public benefits,” the document said.  

C4 also explained in detail the impact that privatisation would have on the indie sector, and claimed that the consultation document underplays its importance to producers.  

It said: “While [C4’s] primary commissioning spend may account for 15% of sector revenue, this does not take into account the secondary value of our programmes, which producers sell around the world.  

“In new research, Pact have estimated that Channel 4 provided £940m of value to the independent production sector in 2019 – through commissions, secondary sales of Channel 4 programmes, and through its contribution to the ‘creative economy.” 

C4 continued: “The combination of Channel 4’s publisher-broadcaster role and the culture and incentives that flow from its public ownership enables it to provide this kind of strategic support for the sector – which no other broadcaster does… 

“Organisations whose primary purpose is profit are more likely to focus their commissioning on certain areas and a smaller number of larger companies to maximise returns on investment – Channel 4’s public purpose means it has made a different set of choices.” 

The broadcaster also repeated its calls for an impact assessment into potential job losses, particularly in the nations and regions, after it claimed a sale would “reverse the progress made towards rebalancing the creative sector across the UK.”  

The government consultation into a C4 sale closes just before midnight today (14 September).