The UK Government has decided to pursue the privatisation of state owned broadcaster Channel 4, following a public consultation, which the move to form part of this years Queen’s speech in May (2022). Proceeds from the sale are expected to be shared amongst the creative TV industry, with independent production companies likely to benefit.
Channel 4, however, have responded calling the move disappointing, quoting “significant public interest concerns” over privatisation. According to the BBC quoting a government source, ministers have concluded that government ownership is holding the broadcaster back in a rapidly changing media landscape, despite the business currently performing well.
Channel 4 was created in 1982 in order to deliver programmes for audiences under-served by existing broadcasters the BBC and ITV, with the channel initially being associated with the various ITV regional franchises. Unlike the BBC, which is funded through the TV license fee, Channel 4 has relied solely on advertising revenue for income.
With the advent of digital television, Channel 4 has expanded with off-shoots such as Film 4, More 4, and E4, with latter responsible for brining popular American comedies such as The Big Bang Theory to UK screens.
The privatisation process is expected to take some time, as measures to find a buyer and clear regulatory processes need to be carried out.