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Channel 4 faces privatisation

Channel 4

In a series of tweets on Monday, Nadine Dorries, Secretary of State for Digital, Culture, Media and Sport, indicated that she will produce a White Paper for the privatisation of Channel 4. In the tweets she indicated that the proceeds of the sale will be used in “levelling up” the creative sector.

Channel 4 was created in 1982 to be a publicly owned broadcaster funded commercially with the vast majority of Channel 4’s income coming from advertisement. As a non-profit any surplus made is reinvested into programming. Channel 4 receives no government money or income from the licence fee.

Channel 4 remit

Channel 4 has a complex legal remit; it is required to commission its shows, not make them in-house. It is to ensure much of its programming comes from outside of London and make educational programming. This will make the terms of the sale important for the price the Government will be able to demand as well as the nature of British television in the future.

Concerns have been raised over the continuation of Channel 4 news, which is widely seen to be an unprofitable, and so a commercially driven owner may wish to scale down or cancel. Krishnan Guru-Murthy, a long-time presenter on Channel 4 news tweeted: “For clarity as some facts are being muddled, Channel 4 is state owned but commercially funded by ads and doesn’t get public money. A sell off requires MPs to vote for it. The editorial independence and funding of news can be ring fenced in a sale if govt wants (as sky news)”.

Until the White Paper is published it is unclear under what terms the Government will sell, potential buyers range from large American media conglomerates, streaming giants and ITV.

Backlash

Resistance to this move already seems to be building, along with opposition figures Conservatives such as Ruth Davidson, Damian Green and Tobias Ellwood all voicing their concern. Ruth Davidson in particular cites the investment in independent creative companies in places like Glasgow as a reason to keep Channel 4 in public ownership.

Final thought

This is a complex situation with multiple forces, incentives and narratives coming together to produce this outcome. A historic Tory mistrust of public ownership, strained public finances and the changing media market have all played their part.

However it seems clear that this Government, particularly since the ascent of Boris Johnson and associated Brexit-leaning Ministers, is unhappy with the current state of the media in Britain. Some feel their view of Brexit was not given it’s due in the media and others are now looking to cement their victory and advance on the fronts of new culture wars. Nadine Dorries certainly fits this mould.

In an embarrassing exchange with Damian Green at a Select Committee last year, she appeared unclear on how Channel 4 was funded but be in no doubt what she lacks in clarity on her brief she makes up for in clarity on her opponents. This is a Government that has an opinion on the British media establishment and will take opportunities to change it.

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