Government planning to Sell Channel 4

[HarveyB]

I don't know if anyone has heard yet but the Government is planning to sell Channel 4 as early as next year.

What is everyone's thoughts on this?

[HarveyB]

Source:
https://www.theguardian.com/media/2021/j...-next-year

Channel 4 could be sold off as soon as next year, with the government planning to launch a formal consultation into the broadcaster’s privatisation within weeks.

Last month, the culture secretary, Oliver Dowden, confirmed it may move to privatise Channel 4 by the end of the current parliament to “provide a sustainable future for the broadcaster”, but on Thursday the Financial Times reported that a decision could be made by the end of this year.

John Whittingdale, the culture minister with responsibility for broadcast policy, will oversee the consultation.

He first advocated for the 38-year-old channel’s privatisation in 1996. The government also considered a sell-off when Whittingdale was culture secretary in 2015 but ultimately backed down.

The aim is to pass legislation to implement the changes by the end of 2022, according to sources familiar with the discussions, the FT reported.

During a meeting of the digital, culture, media and sport select committee in May, Dowden repeated that the privatisation of Channel 4 was “on the table” as part of a government review of public service broadcasting first announced in October 2020.

He said a sale was not definite but that the “rapidly changing broadcasting landscape”, with the growth of Netflix and Amazon Prime, meant sweeping changes were possible.

When asked directly if Channel 4 could be privatised before the end of this parliament, Dowden answered: “We have not ruled that out, no.”

Last year Whittingdale said: “Unlike the BBC, Channel 4 survives as an advertising-funded model. With the advent of the streamers and other competing services that model is under considerable strain.

“We do need to think about Channel 4 and whether there is still a need for a second publicly owned public service broadcaster, or what function it should fulfil. And that is something we are giving a lot of thought to.”

Channel 4 was launched in 1982 as a publicly owned, commercially funded public service broadcaster.

It does not receive public funding but is ultimately owned by the government, with all money going back into the broadcaster, which commissions all of its programmes from independent producers.

The broadcaster saw off a previous bid by the government to force it to move its headquarters outside London, instead agreeing to set up three regional bases in Leeds, Bristol and Glasgow.

[Neil Jones]

Yes, this comes up quite regularly.

There are many stories that occur around key periods of time - every time the franchises come up for renewal ITV want some PSB requirement removed from the new licences, every time a new government is formed they want to flog Channel 4 at some point , and every time a new Premier League deal is announced Sky have dished out money like confetti at a wedding and then plead poverty by increasing subscription charges.

This may be all huff and puff as it were as various governments have wanted to flog Channel 4 for years, but that was as far as it went. I suppose it could be argued the ideal time was in 1993 when they had to start selling their own adverts as opposed to the various ITV companies that inserted them for Channel 4.

[Brekkie]

You'd think if they really wanted to sell it they wouldn't put the same man in charge of investigating the possibility who failed to make the argument in 1996 and 2016.

[Stuart]

When C4 was created, it was given a very specific remit which was never intended to make it the "most popular kid on the block".

I can't see such restrictions being attractive to the likes of ViacomCBS, Sky, Discovery or even ITV.

If you then removed those requirements, it wouldn't be C4, just another set of linear commercial channels in a crowded market.

[JetixFann450]

If Channel 4 was sold off, it would not be Channel 4 then. Channel 5 got sold off to RTL Group, then 'Dirty Desmond' then to ViacomCBS who remain to own Channel 5 for the foreseeable future and I feel like this will be the way for quite a long while. I can't see the likes of Sky or Scripps owning Channel 4.

[HarveyB]

When C4 was created, it was given a very specific remit which was never intended to make it the "most popular kid on the block".

I can't see such restrictions being attractive to the likes of ViacomCBS, Sky, Discovery or even ITV.

If you then removed those requirements, it wouldn't be C4, just another set of linear commercial channels in a crowded market.

Thats what I fear about C4 being privatised. I personally don't think it should

[gottago]

As someone who pitches regularly to Channel 4 I can't tell you how necessary this is now. C4 under the old model isn't sustainable. They have no money at the moment and it's only going to get worse. They've got a real issue with fully funding programmes and the parent companies of indies are starting to have to stump up some of the cash. That's not good news for small indies, part of C4's raison d'etre was to support burgeoning indies and right now they're better off pitching to Channel 5. They're commissioning far fewer shows from what feels like an ever decreasing pool of big suppliers. That's not great for viewers either. The industry needs a strong fourth channel with money to spend and that’s only going to come from private ownership.

Their creative team under (and including) Ian Katz is also a real issue at the moment. Not enough creativity, not really sure what they want to commission, no clear vision for what the channel's schedule should look like. Arguably there hasn't been a genuinely successful brand new hit under Katz. Their desperation to make The Circle sound like a success was telling, it really did underperform. There would surely be a massive, and desperately needed clearout if the channel is bought.

We're at a point where two of their biggest shows, Bake Off and Taskmaster, were bought in from other channels. How does that justify the channel remaining public when they're taking away hits from other services and not even using the increased income to create their own new successful shows?

There was an article in Broadcast last month where they were moaning about Ofcom prohibiting them from commissioning another series of Lego Masters where this time Lego would be funding the programme, oblivious to the fact that Ofcom's ruling perhaps suggests that an hour long advert for Lego probably isn't the sort of show they should be commissioning. Their other advertiser funded shows have been flops, the recent Dell funded Money Maker series was moved out of the 9pm slot. Let’s not forget Changing Rooms brought you by Dulux is coming soon.

IMO their only real shot at surviving as a public company is moving into the content business and owning their own production companies, but that would mean substantially changing the company's remit and there'd be issues with another major publicly owned service directly competing with the private sector. They'd also be starting from the bottom when they don’t already have any cash. There aren't really any substantial genuinely independent production companies any more. Most mega-indies are bigger than Channel 4 now.

When C4 was created, it was given a very specific remit which was never intended to make it the "most popular kid on the block".

I can't see such restrictions being attractive to the likes of ViacomCBS, Sky, Discovery or even ITV.

If you then removed those requirements, it wouldn't be C4, just another set of linear commercial channels in a crowded market.

But is Channel 4 really that different to what other PSBs are offering today? When we're seeing a real effort by all broadcasters to substantially increase backgrounds and voices aired on their channels, what are they offering, other than the general 'tone' of the channel, that's different to what you get elsewhere these days? Arguably the voices that C4 was set up to serve in the past have got much bigger platforms today, no doubt partially thanks to C4.

Viacom owns C5 and they also have plenty of PSB requirements that they are happy to fulfil. They run a scheme for BAME-led small indies to get their first commissions on the channel, years before C4 did something similar. I'd say they've also left C4 in the dust in recent years when it comes to commissioning from and supporting very small indies in the regions. Daisybeck which makes The Yorkshire Vet have previously said they would have gone bankrupt without support from C5 and they're now a very successful regional indie owned by eOne.

Discovery have bought a number of main channels in a number of countries - they own several across the Nordics, TVN in Poland, Three in NZ which they bought just a few months ago. I assume most if not all of these channels have some sort of PSB requirements to fill so I don’t think buyers will necessarily be put off by their remit.

It's also worth saying that when C4 has been at its most profitable in the past, it's also been at its best in terms of public service broadcasting, so why wouldn't a buyer of the channel want to return it to those glory days? C4 has a reputation and an audience that is willing to tune in for that, assuming the shows are any good. Anyone who buys it will know that and will want to harness it. This isn't going to make C4 another ITV.

[Roger Darthwell]

If Channel 4 was sold off, it would not be Channel 4 then. Channel 5 got sold off to RTL Group, then 'Dirty Desmond' then to ViacomCBS who remain to own Channel 5 for the foreseeable future and I feel like this will be the way for quite a long while. I can't see the likes of Sky or Scripps owning Channel 4.

If I am not wrong Scripps no longer exists, it's part of Discovery now

[Brekkie]

I do think their quest to be seen as a worthy PSB off the back of the CBB race row really damaged the channel as a creative force both in terms of breaking new talent and launching innovative new shows. Under Jay Hunt especially it became too much of a "BBC-lite" and in scaling back on competing commercially it denied them the funds there to really up their game PSB wise too.

It really is struggling now to break talent too - there are generations of people from the 80s, 90s and 00s who got their big break with the channel but look at the last decade and it's basically The Last Leg guys, whilst they let Pheobe Waller Bridge and Michaela Coel slip through their fingers.


Therefore I am conflicted as I do think C4 could thrive once more in the right hands - but the worry always is once it goes private it could end up in the wrong hands.

[JK1985]

Here we go again. This always comes up every year. It will not happen. Channel 4 serves the public service broadcasting remit very well indeed. In fact 2021 has been successful to them so far. Just look at "It's A Sin", a massive hit in January/February.

Governments do this when they want to rattle and annoy Channel 4 management. Same with the usual licence fee talk when the government of the day are annoyed with the BBC. Just the usual sabre rattling.

I do not see this happening anytime soon. Handing over a huge broadcaster, to be bought by a foreign company, and who knows what they would do to Channel 4. Utter disaster. Terrible PR for the government. It will not happen.

[all new Phil]

In fact 2021 has been successful to them so far. Just look at "It's A Sin", a massive hit in January/February.

Any other examples?

[Hibbie12]

I wonder if "Deal or no Deal" will move to ITV or Skyone? Will " The Money Money Money Drop" will move to "Channel 5 or ITV?"

[HarveyB]

I wonder if "Deal or no Deal" will move to ITV or Skyone?

That hasn't aired since 2016

[tellyblues]

Their creative team under (and including) Ian Katz is also a real issue at the moment. Not enough creativity, not really sure what they want to commission, no clear vision for what the channel's schedule should look like. Arguably there hasn't been a genuinely successful brand new hit under Katz. Their desperation to make The Circle sound like a success was telling, it really did underperform. There would surely be a massive, and desperately needed clearout if the channel is bought.

We're at a point where two of their biggest shows, Bake Off and Taskmaster, were bought in from other channels. How does that justify the channel remaining public when they're taking away hits from other services and not even using the increased income to create their own new successful shows?

I'm no fan of Channel 4 particularly because of its obsession with dating shows, but that's the thing... what could they commission that will rack up the same production numbers and rate as well?

It's funny you mention Taskmaster and GBBO because these were programmes that were allowed to grow. I doubt they would have lasted long had they been expected to do so well from the off.