Channel 4 has launched an alternative proposal to privatisation in a move it says could create thousands of jobs outside of London by 2030 and generate £11bn for the UK’s economy over the next decade.
The broadcaster said its proposals would leverage "significant private capital" into Channel 4 for the first time, in a way that would not adversely impact the public sector balance sheet.
The Leeds-headquartered broadcaster set out its vision - dubbed ‘4: The Next Episode’ - as the Government starts the process of selling off the channel amid heavy criticism from executives and industry.
Channel 4 was set up by Margaret Thatcher in 1982 and is currently publicly owned and funded through advertising. Last year was a record-breaking financial year for the channel, which surpassed £1bn in revenue for the first time.
Under its alternative proposals, Channel 4 said it would become a “Northern broadcaster”, with the majority of its workforce based outside the capital. The channel, which is behind shows including Gogglebox and Derry Girls , already has creative hubs in Bristol and Glasgow, as well as offices in Birmingham and Manchester.
It employs more than 400 staff outside of London, but is planning to increase the number to 600 by 2025. Meanwhile, it said it would “streamline” its presence in the capital and create a new base in the city that reflected its new ways of working.
“We are not only custodians of the Channel 4 remit, but experts on how to deliver it,” said Channel 4 chief executive Alex Mahon on Thursday, May 5.
“4: The Next Episode represents our vision while continuing to be owned by the British people. We have focused on two key thoughts - the key role of the nations and regions, and how we unpin our commitment to independent producers.”
Channel 4 said some 13,000 jobs could be created every year across the UK economy - of which over 90% would be in the supply chain outside Channel 4 - if its plans are realised.
It also proposed to make a formal commitment, “enshrined in its licence”, to commission at least 50% of content from the nations and regions each year, and launch a programme to tackle industry skills shortages across Britain. The broadcaster pledged to double its investment in 4Skills - its training and investment scheme for young people - and establish a national TV skills school outside London.
The broadcaster has warned privatisation could have a “major impact” on Britain’s TV landscape. It said the Government’s white paper, which outlines the plans for privatisation, would lead to a loss of £320m a year to the indie sector.
Channel 4 said the paper also only committed to having 25% of independent producers and a new owner would not be required to keeping regional roles in Leeds, Bristol and Glasgow.
Ms Mahon agreed there was “much to applaud” in the white paper, however, and admitted the UK broadcasting industry faced “immense challenges”.
“We believe our vision is a practical, realistic and sustainable solution. This organisation is an important national institution,” she said. “Our profit allows for taking risks whereas profit maximisation never can. We fully agree with the stated aims of the Government to preserve the aims of Channel 4.”
Channel 4 said it had discussed its plans with the Government in detail and there were “plenty of stages to go” in the ownership discussion.
“I am always optimistic,” added Ms Mahon. "There is plenty of evidence this is not what the public or industry want.
“I believe that the levelling up which is vested in nations and regions is fundamental to where we ought to go - it's about opportunity and access and creating creative clusters.”
