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<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 and 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.</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 channel’s wider economic and social contributions,
its role in the creative economies of the nations and regions, and its remit are among
the issues we have consulted on.</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>
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