Channel 4 ‘provides competition to the BBC’ says Jeremy Hunt

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As the forthcoming Media Bill is used by Government to push through a potential £1 billion sale of Channel 4, Jeremy Hunt MP said the lucrative deal would be a “shame” for British broadcasting standards. The current Chair of the Health and Social Care Select Committee heralded Channel 4 as a vital part of the “ecosystem” of British television, without which the BBC will have sole reign of the public service broadcast sector.

Speaking to Sky News, Mr Hunt said: “As it stands, Channel 4 provides competition to the BBC on what is called public service broadcasting.

“It works on the kinds of programmes that would not be commercially viable and I think it would be a shame to lose that.”

Asked if the Government’s consideration of privatisation concerns money, Hunt said: “Look, I’m not against privatisation in other contexts but what I’m in favour of is competition.

“I think we have a very high standard of broadcasting in this country because we have competition, not just in the very popular soap operas, box sets, and series that are going to be very commercially successful, but also in other areas like news and documentaries.

“I think it is really important to maintain that competition and I do believe Channel 4 is part of that ecosystem.”

Government sources, looking to overturn a broadcasting business model initiated by Margaret Thatcher more than 40 years ago, described Channel 4’s current ownership model as a “straitjacket”.

They claimed that it would be unable to compete with powerhouse production outfits such as Netflix and Amazon Prime under its current construction.

New ownership will bring more access to capital, insiders said, and allow for more overseas expansion.

One Government source said: “We expect a lot of interest in purchasing Channel 4 from a range of serious buyers who want to build on Channel 4’s strengths and help unleash its full potential.”

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A host of buyers are reported to be interested in the purchase of the public broadcaster, though no series offers have been made public.

Among the potential parties interested are rival channels ITV, Sky, and Paramount, which owns Channel 5.

The sale is expected to be concluded by 2024 and will be carefully monitored by Ofcom, Britain’s media regulator, to ensure against monopolisation.

The money made from the sale of the channel will be reinvested into the industry via a “creative divide”, which sources say will involve training a new generation of skilled workers for the UK film and TV industry.

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The UK’s TV production sector is staunchly opposed to privatisation and the Government is likely to face a swathe of criticism should the deal go through.

Channel 4 supporters have questioned the timing of the sale when it was on course for record revenues of more than £1 billion last year, despite the difficulties of the pandemic.

Critics of the sale claim that privatisation is an act of “cultural vandalism”, one that is designed to punish the channel for its perceived liberal views.

Government sources have denied this claim and argue that the channel’s commitment to a young and diverse audience will not disappear with the sale.  

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