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Cash-strapped Channel 4 'to merge with BBC channel'
Amar Singh11 Dec 2008
A DEAL to merge Channel 4 with the BBC's commercial arm is being considered by regulators and ministers in a bid to guarantee the broadcaster's future.
BBC Worldwide, which owns 28 channels around the world, lucrative rights to DVDs and some programmes as well as the Lonely Planet brand, would provide Channel 4 with £100 million a year - which media regulator Ofcom believes it needs to survive.
Channel 4 faces running out of cash within the next five years as advertising revenues decline. Last year its profits were just £1.6 million and analysts believe the figure will plunge into the red this year because of the economic downturn.
It has appealed for help from the Government and Ofcom, with the BBC merger the latest option under discussion.
Under the scheme, said to be "gaining traction", the BBC would give Channel 4 a majority holding in Worldwide, allowing it access to substantial revenues and control of the business.
The revenue would be used to support the "distinctive" public service broadcasting Channel 4 was set up to provide.
Reader views (12)
This is a pointless merger, born of desperation. BBC Worldwide has a distinct and very valuable brand value. It should not be squandered for the convenience of making the Channel 4 dilemma go away. The brand value will be diluted and the dilemma will not go away.
- Bloke, London, 12/12/2008 11:34
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Not if the likes of Ch4 chief Andy Duncan has any senior position. He was responsible for allowing Endemol, the Big Brother company to really dive into low, low, standards to up the channels ratings. For a long time it was obvious that many of the participants had, or were dealing with mental health, alcohol, or drug issues and problems. People who couldn't cope well in life made for a modern day Bedlam for those programmers. Gawping at them, esp when they'd been boosted drink to make the "lab experiment" more "interesting" really saw Ch4 shameful in scraping the bottom of the creative barrel.
- Jenna, London, 11/12/2008 22:09
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Conversely, I reckon the BBC as a whole rather than C4 should be merged with the real world and compete for funding like all the rest. They might benefit by merging then with a company that knows what the hell they are doing financially.
- Rogan, Irving, 11/12/2008 21:34
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The BBC spends a fortune on the NEWS but I refuse to watch it because it is very poor and not nearly as good as Channel 4's offering. If they do merge then BBC's news operation should be taken over by Channel 4's news management and a vast amount of money should be saved.
- William, London, 11/12/2008 19:43
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I can't believe all the people saying C4 has poor programming. Just look at BBC1's schedule or ITV, now there’s rubbish programming. Channel 4 needs to survive or what decent TV will be left? Has anyone watched the BBC’s Nicholas Lyndhurst ‘comedy’ After You've Gone? If you have you know where I’m going with this!
- Paul, London, 11/12/2008 17:34
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Raymond - I think you wil find BBC Worldwide receives no funding from our licence fee and is a completely separate commercial enterprise, so don't worry!
- Michael, Poole, 11/12/2008 16:45
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My licence fee to fund a failing business - absolutely not. If the BBC has spare money it should be used to reduce the licence fee.
- Raymond, London, 11/12/2008 14:43
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Whats happened to C4? It used to be the leading channel wth innovative programing; it even commisioned ground breaking films. It needs a complete shake up and be prepared o take risks; joining up with the Beeb is not going to help.
- Dhanraj, Basildon Essex, 11/12/2008 13:31
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Let them fold. If they can't afford to support themselves they should not join the BBC, and if they did, would the ystill have commercials or would the public be footing the bill?
- Brandon Thomas, London UK, 11/12/2008 13:30
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Unfair - More 4 has plenty of decent programmes and Channel 4 commissioned the excellent 'The Ascent of Money' perhaps Bob should branch out from E4 which is only good for Hollyoaks.
- Emma, Blackheath, 11/12/2008 12:32
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The BBC's commercial arm should be working towards reducing our enforced tax that is the incense fee, by ploughing any profits back into the BBC.
It is not the job of a publicly body to bail out an independent entertainments organisation that represents only a minority in this society.
- Frank, Home Counties, England, 11/12/2008 12:25
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Perhaps if Channel 4 commissioned some decent programming instead of relying on repeats of Friends and reality TV dross then they might start getting viewers and with them advertisers.
- Bob, Cheam, 11/12/2008 12:02
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