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Channel 4, once a public service broadcaster, is in the midst of going private. So what does this mean for independent filmmakers, actors and production companies? 

Channel 4’s website clearly states its overarching social mission:

‘We aim to create change in the wider world through all of our activities: from TV, to streaming, social media and film – and our day-to-day roles at Channel 4. It’s the impact that Channel 4 has on society, on viewers, on British culture, on the creative industries and on the wider economy.’

As talks of privatisation swoop through the UK, a persuasive wave of potential buyers could change how Channel 4 operates and the content it puts out. 

This news is hot off the press, and while we don’t know who will purchase the channel, nor the exact changes they will make, the story has already sparked public debate. 

Let’s take a look at Channel 4’s history – and how changing hands from public to private might impact the entertainment sector in the UK.

The history of Channel 4 

Set up by Margaret Thatcher in 1982, Channel 4 aimed to challenge the norm. Its remit aimed ‘to stimulate the independent production sector, drive innovation in broadcasting and to commission programmes that showcase Britain in all of its diversity and to stimulate debate.’

Ever since, Channel 4 has been an excellent public service broadcaster, providing universal, free access to quality content.

What’s made Channel 4 unique is it’s powered solely by advertising, meaning that it’s commercially funded but publicly owned. Channel 4 argues that this approach allows them to champion diversity at the heart of everything it does, with ‘universal content reflecting the interests of different communities across the UK.’

Now, the government has decided that Channel 4 will go private. UK Culture Secretary Nadine Dorries stated that public ownership impedes Channel 4’s reach and puts it at a disadvantage to streaming giants like Netflix and Amazon. However, a lot of people have concerns about the impact the change will have on the taxpayer. 

The prospect of overseas companies taking over Channel 4 is likely to alter the content we see on the channel. Channel 4 currently works with 300 creative companies across the UK every year. Sharing this market worldwide will diversify Channel 4 but also lead to less visibility for those in the UK. 

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The future is uncertain 

The announcement has stirred major disruption, as the reasoning behind the switch from public to private is seemingly money-motivated. Shocking. 

Bectu, The Broadcasting, Entertainment, Communications and Theatre Union, has coined this switch ‘cultural vandalism’, highlighting fears regarding the impact on jobs, particularly for those in the creative sector.

Those with shows on Channel 4 are as equally unimpressed with the announcement. 

Derry Girls actor Saoirse-Monica Jackson has expressed her fears that undiscovered talent will continue to go undiscovered with Channel 4’s privatisation. Additionally, Location, Location, Location’s Kirstie Allsopp stated: ‘profit will be king and the passion & inclusion of Channel 4 will be lost.’ 

So, what does Channel 4’s privatisation mean? In a nutshell, privatisation threatens their commitment to buying programmes from British TV production companies to support British citizens. 

Privatisation will also allow overseas broadcasting companies to buy the channel and turn the platform into a paid-for subscription service, making it less accessible for audiences who have financial concerns.  

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Is privatisation an ethical move for Channel 4?

While Channel 4 was initially set up to shake up the entertainment industry, give voice to communities, provide universal, free access to shows and champion budding talent, privatisation threatens the Channel 4 ethos. Additionally, there are concerns that the channels’ core values are being altered in a bid to put profits above their social responsibility. 

However, although most opinions on Channel 4 argue that privatisation isn’t the right move, some believe that privatisation is the way forward. 

The culture secretary argued that ‘the tools and freedom to flourish and thrive as a public service broadcaster long into the future’. The Drum’s editor-in-chief Gordon Young agrees that the ‘Channel Four model is no longer sustainable – it lacks scale’. He also argued that a partnership with another TV company might allow Channel 4 to benefit from improved marketing, distribution and cross-promotion.

Why should Channel 4 not be privatised? 

One of the key arguments for privatisation has been the scalability and its ability to compete with other streaming services. However, Channel 4 isn’t doing all that badly. In fact, user stats are up, and UK citizens love the content, so why change it? 

Channel 4 claims to reach more 16-34-year-olds than any other commercial broadcaster across streaming and TV. And through Film4, the broadcaster has produced 138 Oscar nominations and 35 wins over 39 years.

And if that wasn’t successful enough, over 24 million viewers were registered to Channel 4’s streaming service All 4 in 2020, with 1 billion programme views in 2020 and growing to 1.2 billion that same year.

The jury is still out on whether privatisation will enable Channel 4 to rival the biggest streaming giants, but is it worth sacrificing their ethics for media monopoly?

CSR plays a vital role in brand advocacy. In fact, 77% of consumers are more likely to use companies committed to making the world a better place. 

With CSR playing such an important piece in the brand building and customer retention puzzle, we expect many will boycott the channel for turning to privatisation to put profits above people. 

Make It Rain Money GIF by SpongeBob SquarePants

The silver lining 

It’s not all bad news – if you’re looking for a silver lining, then it could be this:

According to the BBC, ‘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.’ 

At Arke, we hope that Channel 4, whether private or public, will continue to make content that empowers communities and gives voice to those who need it – actors looking for their first break, uncovering taboo topics and production startups that wouldn’t get a look-in otherwise. 
We champion small, UK based companies. So if you’re a production company looking to give your movie the visibility it deserves, then get in touch – we’re advertising experts.

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