Broadcast body hits back at Abraham

The UK’s Commercial Broadcasters’ Association (Coba) has rejected criticism of its members from Channel 4 CEO David Abraham.

Delivering the annual MacTaggart keynote address at this week’s Edinburgh International Television Festival, Abraham said the wave of US firms snapping up UK TV interests could stifle the country’s creativity and has called on the government to intervene.

He said the UK’s free-to-air channels have become “the must-have accessories, the tiny dogs of 2014, amongst US media companies eager to stay ahead of each other by internationalising their revenues, priming their distribution pipes and their tax exposure.”

He pointed to Viacom’s acquisition of Channel 5 and Liberty Global’s recent acquisition of shares in ITV, saying US media magnates like Liberty’s John Malone are gaining too much power and influence in the UK.

But Coba, which represents non-public service broadcasters in the UK, bit back today, saying the country’s production industry and audience benefit from a “thriving mixed ecology.”

A statement from the group said its membership was one of the fastest growing sources of investment in the UK broadcasting industry and had doubled its employment during the past five years.

The statement said: “The growth has benefited the entire UK, including independent producers in the nations and regions and major inward investment productions across the UK. This investment in jobs, infrastructure and production is crucial to maintaining the UK’s status as a European and global television hub, where growth is driven by a wide range of players, both PSB and non-PSB, domestic and multinational.”

It went on to claim Channel 4 and the country’s main pubcaster, the BBC, had a privileged, dominant position. It said C4 had guaranteed access to free-to-air audiences and advertising and sponsorship revenues of more than £846m (US$1.4bn), according to the broadcaster’s 2013 annual report.

“Through its PSB licence, Channel 4 obtains a range of hugely significant advantages in the market,” Coba said.

“In Coba’s view, the UK broadcasting sector benefits hugely from an increasingly mixed ecology, with a wide range of players investing in different forms of domestic production. This drives innovation, creative competition and delivers increased choice for audiences.

“Coba cautions that intervention that damages one part of this sector in favour of another risks undermining this success and putting at risk the UK’s status as a global television hub.”

According to the organisation’s own census, its members invested a record £725m in original UK production last year.