The UK government has confirmed plans to consult on the sale of broadcaster Channel 4, as well as a review of video-on-demand (VoD) services. These will fed into a wider review of the UK public service broadcasting system. The consultation on the future of Channel 4 comes as the broadcaster reported a record financial surplus for 2020.
The government will review the remit and ownership model of Channel 4, believing that moving to private ownership and changing its remit would ensure its future as a sustainable and successful public service broadcaster. Channel 4 is commercially funded, but has been publicly-owned since its launch in 1982. Over 90 percent of its revenue comes from advertising and events-driven sponsorship, making it vulnerable to market fluctuations and drop in linear TV ad spend. Moving to a private ownership model would allow Channel 4 to access new capital, reach international markets, and develop strategic partnerships. It would also help diversify its income streams, supporting investment in new technology and production of new content and programmes.
The government also plans to consult on whether regulation of VoD services, such as Netflix, need strengthening to bring them in line with the rules governing traditional linear broadcasters. It will examine if new rules are required to protect VoD users, such as changes to age ratings and new rules covering impartiality/accuracy of news content and documentaries. It will also consider new measures to level the playing field and help PSBs compete with international streaming services.
