About Broadcasting
Broadcasting is the distribution of audio or video content to a dispersed audience via any electronic mass communications medium, but typically one using the electromagnetic spectrum, in a one-to-many model.
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Privatising Channel 4: What could new ownership mean and who might buy it?
The government has announced that it wants to privatise Channel 4 , which broadcasts programmes including Gogglebox, Countdown and acclaimed drama Such as It's A Sin.
Culture Secretary Nadine Dorries has said that, but critics argue that the quality of Channel 4 's programmes would suffer from a sell-off.
What is Channel 4 and why is it being privatised?Launched in 1982, Channel 4 is a government-owned TV Broadcasting company, which now consists of 12 channels including Film4, E4, and its own streaming service, All 4 . However, instead of receiving public funding (like The Bbc ), Channel 4 gets its money through advertising.
Unlike other broadcasters, it doesn't make its own shows - They are all made by independent Production Companies . Any profits go back into programme-making.
However, the government says that because TV advertising revenues are declining (along with traditional TV viewing) and programme budgets are rising, Channel 4 is being held back from competing with its other TV services.
It says it wants to sell Channel 4 to a private company.
What could be the advantages of selling C4 off?The Independent producers who make programmes for Channel 4 normally make money when shows are sold to streaming services, or to broadcasters in other countries.
A privatised Channel 4 could make more money from those rights, and also make programmes itself. What's more, it could earn money by making shows for other broadcasters around The World - as BBC Studios and ITV Studios do.
Channel 4 would also be free of the current legal limits on how much money it can borrow.
" There are constraints that come with public ownership, and a new owner could bring access and benefits, including access to capital, to strategic partnerships and to The International markets, " when it launched a consultation into The Move last July.
" Private investment would mean more content, and more jobs. "
The culture secretary said that proceeds from the Sale of Channel 4 would be reinvested into independent production, " delivering a creative dividend for all. "
What are the potential disadvantages?People in the Broadcasting industry have expressed concern that some of Channel 4 's less commercial output - Such as drama or news and Current Affairs - might suffer.
Kirstie Allsopp , who hosts Channel 4 's long-running property programme Location, Location, Location, " Profit will be king and The Passion & inclusion of Channel 4 will be lost. "
, Channel 4 programming director Ian Katz cited " The Level of depth" of The News As One part of the schedule that may come Under Pressure , as well as programmes featuring under-represented voices.
Certain conditions could be written into the Sale - Such as that Channel 4 must still spend a certain portion of its budget with independent producers, or show a certain amount of news per day, or make a certain amount of programmes outside London.
However, Dorothy Byrne, the former Channel 4 head of news and Current Affairs , has asked, " How long would it really be before this commercial owner said, 'We really can't afford very expensive Channel 4 News at an hour in Prime Time . '"
What happens next?Media analysts Enders have suggested that Channel 4 would be worth between £600m and £1. 5bn.
Buyers could include existing UK commercial broadcasters like ITV and Sky, or " international companies with existing UK Broadcasting operations and subscale streaming alternatives" like Discovery and Paramount, Enders said.
The privatisation is expected to be included in the forthcoming Media Bill, a New Law that must be debated and passed in Parliament.
Bids are expected to come in next year with a view to completing the Sale in early 2024,
However, The Move has already met with criticism from Labour and some Conservative MPs, including the former culture secretary Jeremy Hunt , who told Sky News , " As it stands, Channel Four provides competition to The Bbc on what's called public service Broadcasting - the kinds of programmes that are not commercially viable - and I think it'd be a shame to lose that. "
Source of news: bbc.com
