The government is to review the ownership model and remit of Channel 4, opening up the broadcaster to the possibility of being privatised as soon as next year.<\/p>\n
Separately, the Department for Digital, Culture, Media and Sport said it would also consider clamping down on streaming services such as Netflix and Amazon Prime Video.<\/p>\n
“Moving Channel 4 into private ownership and changing its remit could help secure its future as a successful and sustainable public service broadcaster,” the government said in a statement.<\/p>\n
It said it would also look at “whether the regulation of video-on-demand services such as Netflix and Amazon Prime need strengthening so they are subject to similar rules as traditional ‘linear’ broadcasters such as the BBC, ITV and Sky”.<\/p>\n
These stricter rules may include changes to age ratings and firmer impartiality and accuracy guidelines for documentaries and news content – alongside “measures to level the playing field so public service broadcasters can compete with international rivals”.<\/p>\n
But senior executives at Channel 4 hit back against a possible privatisation of the broadcaster on Tuesday, warning some programmes could be scrapped if the move goes ahead.<\/p>\n
The issue is boiling over even as the network announces its best ever annual results, after a recovery in advertising revenues and a reduction in spending left Channel 4 in a strong financial position.<\/p>\n
Channel 4 is state-owned but 90% funded by adverts, giving it a unique position among the UK’s broadcasters. Its advertising revenue allows it to create content for more diverse audiences, in line with its public service remit.<\/p>\n
The reviews of Channel 4 and the streaming services will come ahead of a broadcasting white paper due in the autumn. The paper will consider the future of the country’s broadcasting landscape, the government said.<\/p>\n
“We’ll now be looking at how we can help make sure Channel 4 keeps its place at the heart of British broadcasting and level the playing field between broadcasters and video-on-demand services,” said culture secretary Oliver Dowden.<\/p>\n
“Moving Channel 4 into private ownership could allow it to access new capital, create strategic partnerships, and reach international markets only available through the private sector,” the statement added.<\/p>\n
Supporters of privatisation believe it is the only way to fend off the threat posed by streaming services, by allowing broadcasters to raise money to compete.<\/p>\n
But Charles Gurassa, Channel 4’s chairman, countered this notion on Tuesday, saying the broadcaster had the financial firepower to invest when necessary, and “we would release it”.<\/p>\n