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Media

Government may rush through Channel 4 privatisation as threat from streaming services grows

Culture Secretary Oliver Dowden said a decision on whether to privatise the broadcaster could be taken within this parliament.

Channel 4, the publicly-owned broadcaster, could be privatised before the end of the year, according to the culture secretary, Oliver Dowden.

Dowden made the revelation during a meeting of the Digital, Culture, Media and Sport select committee.

The government announced a review of public service broadcasting in which privatisation of Channel 4 was mooted.

Dowden said the “rapidly changing broadcasting landscape” meant that Channel 4 could be sold even sooner than expected “to provide a sustainable future for the broadcaster”.

In recent years, the old advertising-driven funding model used by the likes of Channel 4 has come under threat from streaming channels, such as Netflix, which use a subscription-based model (as does the BBC, in a way). The advent of digital video devices has also made it easier for viewers to dodge the adverts, which has diluted the mass-market clout the traditional TV companies used to have. Channel 4 competitor, ITV PLC (LON:ITV) has responded to the threat by making more of its own programmes that it can sell on to other broadcasting networks.

The possibility of rushing through the privatisation of Channel 4 could be seen as a move for the broadcaster to raise a decent amount of fresh capital before the rot sets in further.

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