Following the cabinet reshuffle in September, the new DCMS Secretary Nadine Dorries has made clear that the option of privatising Channel 4 is still very much on the table, but that no final decision has been made. The hundreds of independent TV and film production companies, large and small, which make up Pact’s membership are very clear that they do not want to see any change to Channel 4’s ownership. And we are worried that a change could have a heavily detrimental effect on the UK’s vibrant and successful independent production industry.
Channel 4 gave many of our members their first commissions, and their first break into the industry. In fact, around 15 indies a year – 195 since 2006 – go on to become successful businesses after a first commission from Channel 4. And Channel 4 commissions more indies, and more small indies, than any other public service broadcaster (PSB), and has gone further than anyone else in its commitment to commissioning in the nations and regions. It is an absolutely crucial incubator of new small businesses in our sector – which is of course one of the jobs it was created to do when it was set up.
Privatisation would change the way Channel 4 operates. It would shift its incentives, making it more likely that programmes, including regional programmes, would be made in-house, just as they are by other broadcasters – reducing the opportunities for our members. Analysis for Pact by O&O found that a move towards in-house production, which is something the Government explicitly envisages in its consultation on the future of Channel 4, would mean an estimated loss to the independent sector of £3.7bn over a decade.
Even in a world where broadcasting is changing, with subscription video on demand services like Netflix and Amazon Prime becoming an increasingly important part of the overall ecosystem, public service broadcasters are crucial. PSBs like Channel 4 still account for 77% of original UK commissions, and delivered 32,000 hours of original productions made in the UK in 2019, compared to just 221 hours by subscription video on demand services.
Channel 4, as a major commissioner of independent talent, the biggest commissioner of indies from the UK’s nations and regions, and a key source of income for indies both through commissions and through global intellectual property rights, matters to our members. Our message to the new Secretary of State, as she makes up her mind about its future, is that any changes to Channel 4’s ownership could close off opportunities to exactly the kind of dynamic, creative businesses that all of us want to encourage.
Article submitted by Pact.
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