The Potential Privatisation of Channel 4: What Might Happen?

Channel 4 turns 40 this year. The broadcaster has been part of Britain’s media and culture since the early 80’s and was founded on giving the British public a ‘culturally challenging alternative’ to the likes of the BBC channels – something I feel as though I have experienced first-hand having grown up watching Misfits, Made in Chelsea, First Dates and many more from Channel 4.

While currently ‘publicly owned but commercially funded’, there has been extensive discussion over the potential privatisation of Channel 4 in coming years and the government have not yet ruled out the possibility of ‘selling the company by 2024’.

The main changes we would see to Channel 4 in the event of privatisation are as follows.

A decline in diverse content

Those who love Lady Parts, It’s a Sin, and Derry Girls will be aware of Channel 4’s recent increasing presence in providing voices to all walks of life and portraying stories of alternative characters as well as historically underrepresented demographics. Currently, Channel 4 pride themselves on being dedicated to ‘representing the UK’s cultural diversity and alternative voices’. Should Channel 4 no longer be at the ‘ownership’ of the UK taxpayer, this could result in a change of creative agenda. The interests would potentially be not to depict the vibrant range of UK stories, but to capitalise on profits. A decline in diverse content would be expected.

Large-scale production

Since 1982, Channel 4 has invested a total of ‘£12bn in the UK’s independent production sector’ and currently works with over 300 indie production companies across the UK. This not only makes great use of creative talent across the UK (not just London-centric), but provides funding into companies, subsequently bolstering economic growth for the future of UK media production.

Privatisation has the potential to put ‘up to 60’ of these production companies out of business, should a business organisation take production in-house. Additionally, should an existing overseas media company take ownership of Channel 4 the economic benefit would also be transferred abroad. Over 40 independent TV and film production companies behind shows such as Say Yes to the Dress have warned the government that the privatisation of Channel 4 could put them out of business.

Economic consequences

Should privatisation occur, there is the potential for monopolisation in the market if Channel 4 overtook competitors, which could greatly benefit the consumer in terms of quality and quantity of new content. However, there is the risk that a private Channel 4 would ‘seek to set higher prices which exploit consumers’ to incite profits. Therefore, a public monopoly would be better suited to the consumer as they could receive excellent content while paying through taxes, and not a monthly subscription like Sky.

The Repercussions for GBBO

The Great British Bake Off is a cornerstone of Channel 4’s vibrant, very British, content. While Channel 4 has just signed a new 3-year contract with Love Productions to continue the hit show, there are many questions around what the beloved baking show would look like after the possible privatisation of Channel 4.

The main concern would be in the event that a foreign or, as predicted, US owned media company takes ownership of Channel 4. Though a private Channel 4 could boost the show financially, the authentic inherent ‘Britishness’ about the branding of GBBO could be at risk should production move in-house of a large US media company. This could further put the popularity of the show at risk – would the public continue to enjoy a US owned Bake Off?