Channel 4: Government abandons controversial privatisation plan

Nathan Hyde
By Nathan Hyde
Published 5th Jan 2023, 12:42 BST
The Government has scrapped plans to privatise Channel 4, it has been confirmed.

The Department for Digital, Culture, Media and Sport (DCMS) said the decision was made following discussions with Channel 4 and the independent production sector and an “ambitious package of measures” would serve as an alternative to the sale.

The package includes reforms through the Media Bill which will allow Channel 4 to make and own some of its content and a new statutory duty on the board to “protect” the long-term financial sustainability of the business.

The broadcaster has also committed to increasing roles outside London and providing more opportunities for people from across the UK to gain experience in the sector as part of the package, the DCMS announced.

Culture secretary Michelle Donelan decided the Government should drop its plans to privatise Channel 4Culture secretary Michelle Donelan decided the Government should drop its plans to privatise Channel 4
Culture secretary Michelle Donelan decided the Government should drop its plans to privatise Channel 4

Culture Secretary Michelle Donelan said: “Channel 4 is a British success story and a linchpin of our booming creative industries. After reviewing the business case and engaging with the relevant sectors, I have decided that Channel 4 should not be sold.

“This announcement will bring huge opportunities across the UK with Channel 4’s commitment to double their skills investment to £10m and double the number of jobs outside of London.

“The package will also safeguard the future of our world leading independent production sector. We will work closely with them to add new protections such as increasing the amount of content C4C must commission from independent producers.”

The decision to abandon privatisation was welcomed by Channel 4 Chief Executive Alex Mahon.

She said: "Channel 4 is innovative, editorially brilliant and loved by audiences that others don’t reach, most of all the young and underrepresented.

“In the analogue world, we did this spectacularly. Now, in the digital era, we are doing it again. Working with the world-leading TV and film producers of the UK, we continue to give birth to ideas that thrill audiences and change perspectives globally.”

She added: “We will move faster, invest more, take more risks, break down barriers and push boundaries; getting up to do that every day is an utter privilege for those of us lucky enough to work at Channel 4.”

Ms Donelan’s predecessor, Nadine Dorries, decided to press ahead with privatisation last year, even though 96 per cent of the 55,737 people who took part in a consultation said they did not think the move was necessary.

The Government claimed the broadcaster is overly reliant on declining TV advertising to support its business and it will struggle to survive in a media landscape increasingly dominated by streaming services like Netflix.

But many were concerned that a buyer would sell Channel 4’s headquarters in Leeds, scrap the model which ensures the broadcaster buys all of its programming from independent production companies, and abandon its remit to deliver “innovative, alternative content that challenges the status quo”.

Channel 4, which was founded by Margaret Thatcher’s Government in 1982 and is now entirely funded by advertising, had resisted privatisation and last year it published a counter-proposal that would allow it to remain under public ownership.

The broadcaster also generated record revenue of £1.2bn in 2021 – with a £100m surplus – and saw a 21 per cent increase in viewing on its streaming platform, All 4.