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June 24, 2021

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UK unveils plan to sell Channel 4

Britain鈥檚 Conservative government said yesterday it was planning to sell Channel 4, launched 39 years ago as an edgy alternative to the BBC and ITV, to help secure its future as a public service broadcaster.

The advertising-funded channel was set up with a remit to provide challenging and distinctive programming for audiences under-served by traditional broadcasters.

Rather than making its own programs, Channel 4 commissioned them from new production companies, helping establish Britain鈥檚 successful independent TV production sector.

Channel 4, home to a flagship daily news program, comedies such as 鈥淭he Inbetweeners鈥 and dramas like 鈥淚t鈥檚 a Sin,鈥 questioned the government鈥檚 reasoning for the sale, saying it was financially in 鈥渞ude health鈥 and fulfilling its mandate.

But the government said Channel 4 was vulnerable to unstable advertising markets, and a move into private ownership with a changed remit could help safeguard its future.

It also said that it would consult on bringing the regulation of video-on-demand services such as Netflix and Amazon Prime into line with broadcasters such as the BBC, ITV and Sky, for example in impartiality rules for documentaries and news content.

Digital Secretary Oliver Dowden said Britain鈥檚 broadcasting rules dated to the 20th-century analog age. 鈥淭he time has come to look at how we can unleash the potential of our public service broadcasters while also making sure viewers and listeners consuming content on new formats are served by a fair and well-functioning system,鈥 he said.

He said an alternative ownership model, but one where Channel 4 kept its public service remit 鈥渕ay be better for the broadcaster, and better for the country.鈥

Dowden鈥檚 junior minister John Whittingdale did not rule out the possibility of a foreign bidder, like Rupert Murdoch.

鈥淲e will be interested to hear from anybody who expresses interest,鈥 he told LBC radio.

Channel 4 Chief Executive Alex Mahon said the broadcaster鈥檚 ethos would be threatened by a sale.

Enders Analysis said it believed it would be difficult for Channel 4 to maintain its remit 鈥 for example to champion unheard voices and take bold creative risks 鈥 with a new buyer paying any more than a 鈥渕eager sum.鈥

鈥淥ur priority is about the impact we make on the public and the impact we make on the UK creative economy; it is not about the bottom line,鈥 Mahon told lawmakers on Tuesday.


 

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