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Channel 4 'must form partnership' Channel 4 'must form partnership'
(about 1 hour later)
Channel 4 should become part of a bigger organisation through a merger or partnerships, Ofcom has recommended.Channel 4 should become part of a bigger organisation through a merger or partnerships, Ofcom has recommended.
The media regulator has suggested in a report that the channel, which faces a funding shortfall of £150m, could merge with Five or BBC Worldwide.The media regulator has suggested in a report that the channel, which faces a funding shortfall of £150m, could merge with Five or BBC Worldwide.
This would ensure that the channel was a strong alternative public service broadcaster to the BBC.This would ensure that the channel was a strong alternative public service broadcaster to the BBC.
Finding new ways of providing high quality regional news on channels other than the BBC was also key, it said.Finding new ways of providing high quality regional news on channels other than the BBC was also key, it said.
We're in discussions with BBC Worldwide at the moment and they're really very exciting Andy DuncanChannel 4We're in discussions with BBC Worldwide at the moment and they're really very exciting Andy DuncanChannel 4
Ofcom chief executive Ed Richards said audiences wanted a strong alternative public broadcaster to the BBC.Ofcom chief executive Ed Richards said audiences wanted a strong alternative public broadcaster to the BBC.
Channel 4, "with its strong track record", should be at the heart of that service but, because of its funding shortfall, change was needed, Mr Richards added.Channel 4, "with its strong track record", should be at the heart of that service but, because of its funding shortfall, change was needed, Mr Richards added.
"Our preference is to try to secure that through partnerships, joint ventures or even a merger," he told BBC News."Our preference is to try to secure that through partnerships, joint ventures or even a merger," he told BBC News.
Channel 4 chief executive Andy Duncan said a partnership with BBC Worldwide, the corporation's commercial arm, was "the preferred option".Channel 4 chief executive Andy Duncan said a partnership with BBC Worldwide, the corporation's commercial arm, was "the preferred option".
"We're in discussions with BBC Worldwide at the moment and they're really very exciting."We're in discussions with BBC Worldwide at the moment and they're really very exciting.
READ OFCOM REPORT IN FULL Putting Viewers First [1.17KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader hereREAD OFCOM REPORT IN FULL Putting Viewers First [1.17KB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here
"Where you have got an alignment of interests in two companies, BBC Worldwide and Channel 4, both generate income commercially to put back into content for the benefit of the public," he told BBC News."Where you have got an alignment of interests in two companies, BBC Worldwide and Channel 4, both generate income commercially to put back into content for the benefit of the public," he told BBC News.
But a merger with Five, which is part of a German-owned media conglomerate, would be "like mixing oil and water", he said.But a merger with Five, which is part of a German-owned media conglomerate, would be "like mixing oil and water", he said.
"We are there for public purpose, Five is owned by RTL to maximise profits for their shareholders.""We are there for public purpose, Five is owned by RTL to maximise profits for their shareholders."
Ofcom said ITV and Five should be "strong commercial networks making entertaining, engaging UK content including national and international news, but with limited public service commitments".Ofcom said ITV and Five should be "strong commercial networks making entertaining, engaging UK content including national and international news, but with limited public service commitments".
The BBC had offered to share some newsgathering resources with ITV, but Ofcom said the government needed to create an alternative plan to secure the long-term future of local news around the UK.The BBC had offered to share some newsgathering resources with ITV, but Ofcom said the government needed to create an alternative plan to secure the long-term future of local news around the UK.
FROM THE TODAY PROGRAMME class="" href="http://news.bbc.co.uk/today/hi/default.stm">More from Today programme Ofcom chief executive Ed Richards
It suggested the establishment of independently-funded bodies to provide regional news, at a cost of up to £50m.It suggested the establishment of independently-funded bodies to provide regional news, at a cost of up to £50m.
It is likely that news produced by such new bodies would still be aired on ITV.It is likely that news produced by such new bodies would still be aired on ITV.
But broadcasting workers' union Bectu said the report effectively "rubberstamps ITV's proposals to cut up to £40m from its current regional news spend".But broadcasting workers' union Bectu said the report effectively "rubberstamps ITV's proposals to cut up to £40m from its current regional news spend".
More than 400 production staff and journalists would leave ITV regional news in the next few weeks, assistant general secretary Luke Crawley said.More than 400 production staff and journalists would leave ITV regional news in the next few weeks, assistant general secretary Luke Crawley said.
"The regulator's proposals for commercial regional news, without ITV, are over-complicated and put all ITV services and jobs at risk," he added."The regulator's proposals for commercial regional news, without ITV, are over-complicated and put all ITV services and jobs at risk," he added.
Ofcom also said that:
  • The traditional broadcasting model - with the BBC funded by the licence fee and commercial channels funded by advertising - was no longer sustainable
  • The commercial broadcasting sector was going through significant structural changes, including the digital switchover in 2012 and pressures on television advertising
  • This would leave an estimated shortfall in funding for commercial TV of up to £235m a year by 2012
  • It was rejecting plans for the BBC to give its existing licence fee money to other broadcasters
  • But using money from the licence fee which is currently allocated to help with switching to digital TV was a "credible funding option"
  • As well as local and national news, children's programming in the UK was also under threat
  • The government should therefore consider specific additional funding for children's programming, it said
Ofcom also said that:
  • The traditional broadcasting model - with the BBC funded by the licence fee and commercial channels funded by advertising - was no longer sustainable
  • The commercial broadcasting sector was going through significant structural changes, including the digital switchover in 2012 and pressures on television advertising
  • This would leave an estimated shortfall in funding for commercial TV of up to £235m a year by 2012
  • It was rejecting plans for the BBC to give its existing licence fee money to other broadcasters
  • But using money from the licence fee which is currently allocated to help with switching to digital TV was a "credible funding option"
  • As well as local and national news, children's programming in the UK was also under threat
  • The government should therefore consider specific additional funding for children's programming, it said
Ofcom said decisions on many of the issues raised were "needed within the next year".Ofcom said decisions on many of the issues raised were "needed within the next year".
"We recognise that difficult choices will need to be made about the use of scarce resources," the report added."We recognise that difficult choices will need to be made about the use of scarce resources," the report added.