The UK government confirms that privatized channel 4 will be allowed to create indoor shows

The UK’s independent production sector is transforming after the Conservative government confirmed that Channel 4 will be able to manage and sell its own programs after privatization.

Earlier this month, the Department of Digital, Culture, Media and Sports announced it would pursue controversial plans to sell government-owned Channel 4 to individuals. He expressed his proposal in part in a broader white paper which outlines a vision for the future of British public service broadcasting.

Restrictions preventing Channel 4 from creating its own programs will be lifted after the sale, allowing it to “diversify its revenue streams and improve its long-term sustainability.” This will put the channel on par with competitors such as the BBC, ITV and Channel 5, which have fewer and fewer domestic businesses.

Channel 4 has yet to impose a “minimum volume of programs” on independent producers “according to the quotas of other PSBs”, although the level has not been specified.

The development will be devastating for the UK’s burgeoning manufacturing sector.

Since the 2003 trade deal, India has significantly evolved from Channel 4’s existing “publisher-broadcaster” model. In effect, it prevents Channel 4 from owning content and allows its producers to retain the rights to their commissions.

However, the government said the UK manufacturing sector, which is now worth around 3.3 billion ($ 3.8 billion), has relied less on Channel 4’s fees, adding that only 7% of that revenue comes from from the station. He also cited PACT census statistics that the broadcaster spent far less ($ 210.21 billion) on outside fees than the BBC ($ 8.508 million) and ITV ($ 6.356 million) in 2020. Channel 4 immediately declined. the complaint offer, noting that it had spent 0.370 million. outdoor producers that year.

The white paper is hampering the independent sector, with the government committing to tax breaks for the creative sector, although no further details were released today and is likely to be of little comfort to the sector angry about the move when it was. revealed for the first time .time. last month.

The government called Channel 4 “Britain’s success story”, which many see as proof that change is not necessary, but added: “Channel 4 is now at a unique tipping point after fulfilling its mission. The government has consulted about its future success. ”And in your response on how best to ensure sustainability and today’s consultation concluded that now is the time to implement a change of ownership.

Access to private capital and proceeds from product and software sales will provide Channel 4 with the “essential tools” it needs to compete with rival PSB and streamers in the future, he added.

The White Paper reiterated its claim that the privatization of Canale 4 would save taxpayers’ money, although the station does not receive public funding and receives its revenue through advertising and other streams, reinvesting that amount into programs. This has been publicly mentioned several times since Culture Secretary Nadine Doris first announced it.

The government argues that because Channel 4’s debt is limited, the “risk associated” with these limits will increase for the taxpayer so that the broadcaster can invest in content and technology.

Canale 4 immediately responded to the White Paper and corrected several statements made by the government in recent weeks. He denied that the spending of Canale 4 had been reduced, arguing that this year it would reach 11,711 million, 40 40 million more for 2021; These advertising revenues increased by 25% in 2021; And he noticed a significant increase in digital revenue and engagement.

“Channel 4 has never been in a better financial position and is financially stable,” the broadcaster said in a letter of recommendation. “Over the past two years, Channel 4 has generated a record financial surplus and revenues of £ 934 million.”