Channel 4 has taken the bold and unusual step of revealing its own "game-changing" plans for its immediate future which were flatly rejected by government ministers in favour of privatisation.
The government announced last month that Channel 4 will be privatised after almost 40 years of public ownership. The broadcaster, which only moved its headquarters to Leeds last year, had submitted detailed proposals to ministers in a last-ditch attempt to change their minds, but these were dismissed.
With privatisation looming, the broadcaster has today published its proposed alternative which it says would have led to an extra £1 billion investment in the industry "without jeopardising the important role which Channel 4 plays in supporting the growth of the independent production sector".
Read more: Channel 4's bold plans for Leeds which will no longer go ahead
Speaking about a consultation on the government's privatisation plans, Channel 4 chief executive Alex Mahon said: "56,000 people responded. 96 per cent of them were not in favour. There is plenty of evidence that this is not what the public wants and it is not what the industry wants."
"These changes could potentially have a major impact on the television landscape. They are extremely different to the proposal we envisaged. This could mean the loss of around £320 million a year to the independent sector."
During failed discussions with ministers, Channel 4 presented its own plans for the future. Today, Mahon made them public to tell viewers about the alternative to the government's privatisation proposals.
Titled '4: The Next Episode', the new scheme would have seen Channel 4 become "a northern-based broadcaster". It wanted to double the number of jobs in Leeds, Glasgow and Bristol from 300 to 600 by 2025 and produce half of all content outside London.
There were also plans to "dramatically expand" 4Studio, the channel's digital content production studio based in Leeds. Channel 4 added it would have spent £100 million over the next decade on its 4Skills programme in Leeds to help disadvantaged youngsters enter the television industry.
"We did discuss them [the plans] in detail with government and clearly it's not the choice they made," said Mahon. "I think that's disappointing and a shame for the UK creative industries. I think that will make a negative impact on the creative industries across the UK."
Mahon spoke at length about the broadcaster's "record-breaking" financial figures for 2021 and added it was planning to plough more money into independent creative industries in years to come. She said: "Financially, Channel 4 is in the most robust health that it has ever been."
Sally Joynson, chief executive of Leeds-based Screen Yorkshire, had backed Channel 4's blueprints, which were described as "the most profound evolution to our model since Channel 4 was created".
She said: "Channel 4’s new national HQ in Leeds sends a hugely important message – that you can make a career from here – and particularly for the more economically deprived parts of Yorkshire, that is game-changing."
The government has said its plans to privatise Channel 4 will allow the broadcaster to access greater investment and diversify its revenue streams. However, Mahon said it will lead to "unintended, negative consequences".
She said: "I'm sure the DCMS don't want to damage the UK creative industries, but this White Paper as it is currently laid out, not only is it extremely different to our proposal, but we need to be very careful that we do not create unintended, negative consequences for the industry. The consequences can be foreseen. We have a responsibility to point that out."
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