C4: Warm words from BBC not enough

Andy Duncan

• Increase image
• View all images

Channel 4 chief executive Andy Duncan has warned that the BBC's proposals to share its resources must amount to "more than warm words" and make a "material difference" to its funding model.

The caution comes in line with early scepticism from commercial broadcasters that the package of offers put forward by the BBC will not be enough to solve the PSB funding gap.

Among other things, the BBC has offered to share production technology and the commercial expertise of BBC Worldwide to help rival broadcasters to exploit their rights internationally.

However, the measures will have minimal benefit for C4, which claims it needs new funding to deal with a £100m shortfall after digital switchover. As a publisher-broadcaster, C4 does not produce any content itself and so will not make direct savings through digital production technology or own any content rights to exploit.

Ad-funded broadcasters are also uneasy about the launch of a new IPTV standard, claiming that opening up the market could jeopardise their current model because of a perception among advertisers that online audiences are worth a fraction of their TV counterparts.

The terrestrial broadcasters were tight-lipped on the record, but C4 put out a statement reiterating its need for new funding if it is to continue to provide the BBC with "meaningful public service competition".

In it, Duncan said: "If Ofcom and the Government agree, as indicated, that they want Channel 4 to be the main source of public competition to the BBC, then they must consider new forms of public support to underpin our public service contribution and to replace the analogue spectrum subsidy we currently receive.

"This support is needed urgently. Deep structural changes in media are affecting TV advertising; the market is forecast to be down 2% this year and there is significant cost inflation. We are already cutting programme spend for this year and next.

"We welcome the BBC's comments today about partnership and will study their proposals in more detail. To be meaningful, these proposals need to be more than warm words and make a material difference to our funding model."

C4 issued the statement ahead of the publication of its own submission to Ofcom, due at the end of today after the regulator extended the deadline from the 19 June.