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Channel 4 future funding challenge - Venture Insights

Report Overview

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Channel 4 future funding challenge

PublisherEnders Analysis.
Publish Date February 5, 2009
Sector FTA TV.
Company BBC, Channel 4, ITV.

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The essential conclusion of Ofcom’s Second Public Service Broadcasting Review is that the present commercial PSB model is unsustainable in the digital age. The Ofcom solution of fixing on Channel 4 as the alternative, commercial PSB voice, while freeing up the Channel 3 and 5 licensees from most of their PSB obligations, still leaves a major funding gap.

A particularly attractive solution is some kind of synergy-generating merger/JV/partnership, but difficult to achieve in practice. The attached note examines the main issues that we may expect to arise with the existing proposals.