UK government pushes ahead with controversial Channel 4 sell-off

It’s a Sin

The UK government is pressing ahead with its plans to sell off commercially funded public service broadcaster Channel 4, and is hoping to raise at least £1bn (US$1.3bn) from privatising the 40-year-old company.

Alex Mahon

The pubcaster’s CEO Alex Mahon has emailed staff this evening saying she understands the government has decided to proceed with its privatisation and will announce the decision shortly.

Mahon said: “In our engagement with government during its extended period of reflection, we have proposed a vision for the next 40 years, which we are confident would allow us to build on the successes of the first 40.

“That vision was rooted in continued public ownership and was built upon the huge amount of public value this model has delivered to-date and the opportunity to deliver so much more in the future. But, ultimately, the ownership of C4 is for government to propose and parliament to decide.”

The broadcaster has released a statement this evening that says: “With over 60,000 submissions to the Government’s public consultation, it is disappointing that today’s announcement has been made without formally recognising the significant public interest concerns which have been raised.

“Channel 4 has engaged in good faith with the government throughout the consultation process, demonstrating how it can continue to commission much-loved programmes from the independent sector across the UK that represent and celebrate every aspect of British life as well as increase its contribution to society, while maintaining ownership by the public.

“Recently, Channel 4 presented [the government] with a real alternative to privatisation that would safeguard its future financial stability, allowing it to do significantly more for the British public, the creative industries and the economy, particularly outside London. This is particularly important given that the organisation is only two years into a significant commitment to drive up its impact in the UK’s Nations and Regions.

“Channel 4 remains legally committed to its unique public service remit. The focus for the organisation will be on how we can ensure we deliver the remit to both our viewers and the British creative economy across the whole of the UK.”

Mahon said she expected the process to take 18 months to work through the House of Commons and then the House of Lords, but that would see it completed before the next general election is held in the UK in 2024.

Sir Ian Chesire

The news comes after businessman Sir Ian Chesire was today confirmed as the next chair of C4. Media regulator Ofcom announced that the former boss of DIY retailer B&Q will join the It’s a Sin broadcaster’s board on April 11 for a three-year term.

Proposals to privatise The Great British Bake Off broadcaster were first revealed by the UK’s Department for Digital, Culture, Media & Sport (DCMS) in June 2021.

Arguing that selling C4 to a private owner would be the best way for the broadcaster to compete with US streamers, the government launched a consultation on its future between July 6 and September 14.

However, that decision was delayed after culture secretary Nadine Dorries, a former contestant on ITV’s I’m a Celebrity…, received round 60,000 submissions relating to the sale of the broadcaster during the consultation period.

The response from the UK TV industry and bosses at C4 about the privatisation plans have been overwhelmingly negative.

In September Mahon said: “We have not seen any evidence that the irreversible change of privatising C4 will be in the interests of either British audiences or the UK’s economy, and it could well have serious and long-lasting consequences for our world-leading television production sector.”

Meanwhile, the UK’s production sector has expressed fears that a privatised C4 could see numerous indies go out of business.

Buyers that are reportedly interested in purchasing C4 include fellow commercial broadcaster ITV and C4’s former CEO and Conservative Party life peer Lord Michael Grade, prior to him more recently being appointed chairman of the UK media regulator Ofcom.

In addition to ITV and Grade, Comcast-owned Sky, Discovery and Paramount are rumoured to have looked into buying the It’s a Sin broadcaster.

Critics have accused the government of using the proposal to distract attention away from calls for prime minister Boris Johnson to hand in his resignation. Johnson outraged the nation after it was revealed he attended a string of parties during lockdown.

Dorries at one stage seemed to be labouring under the misapprehension the channel was in receipt of money from taxpayers, when in fact it is funded entirely by its commercial activities.

When trying explain the logic of privatisation to a parliamentary select committee in November, she said: “It’s right that a public service broadcaster, in the rapidly changing digital environment that we’re in at the moment… I think the longevity and the future of that broadcaster should be brought into question and should be, particularly when it’s in receipt of taxpayers’ money. It is our responsibility to evaluate whether taxpayers are receiving value for money and whether that model is sustainable in the future.”

Channel 4 is commercially funded, and at the launch of its 2020 report was running at a financial surplus of £74m (US$103m). It is not in receipt of taxpayers’ money or a licence fee. When this was pointed out to Dorries, she simply replied: “And… so, although it’s… yeah… and that.”