| answer text |
<p>The government has recently consulted on whether an alternative ownership model
for Channel 4 (but one where it retains a public service remit) may be better for
the broadcaster, and better for the country.</p><p>We want Channel 4 to continue to
be a public service broadcaster, and we want it to continue to contribute socially,
economically and culturally to life across the UK. But there is a wealth of evidence
- including Ofcom’s recent report - on the future challenges facing our traditional
linear TV broadcasters. Linear TV viewing is down almost 60% amongst 16-25 year olds
since 2010, whilst 16-34 year olds now spend almost twice as much time on YouTube
and subscription VoD services than they do with broadcast content. There are now 315
channels, compared to 5 in 1982 when Channel 4 was established. Linear TV advertising
revenues - which constituted <del class="ministerial">over 90</del><ins class="ministerial">74</ins>%
of Channel 4’s revenue in 2020 - have declined across the sector at a compound annual
rate of 2.5% since 2015.</p><p>Channel 4 is uniquely constrained in its ability to
meet these challenges while it remains under public ownership - particularly because
its access to capital and ability to pursue strategic partnership opportunities is
limited.</p><p>Moving Channel 4 into private ownership could allow it to access new
capital, take advantage of international opportunities, and create strategic partnerships
only available through the private sector. A thriving, sustainable Channel 4 could
offer the best prospects for long-term job creation and support to the wider creative
economy.</p><p>Consulting on the broadcaster’s future is therefore about ensuring
that Channel 4 can continue to contribute to the UK’s success in public service broadcasting
for years to come, and how we ensure its ownership model best supports this aim.</p><p>The
consultation opened on 6 July, running for 10 weeks, before closing on 14 September.
We are currently analysing responses to our consultation, and evidence received through
it, to inform our policy-making decisions. Once we have answered the questions set
out in the consultation, we will know what specific impacts to assess and will therefore
be in a position to carry out an impact assessment.</p><p> </p><p> </p>
|
|
