Thompson resists BBCW profit share with C4
- Published: 23 June 2008 13:50
- Author: Katherine Rushton
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- Last Updated: 23 June 2008 13:50
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BBC director general Mark Thompson has sent out his clearest signal yet that the corporation will try and resist any deal to siphon off a percentage of profits from BBC Worldwide to Channel 4.
Over recent months the proposal has been gaining traction in the broadcasting industry as a way of closing the funding gap that C4 faces post-digital switch over, without resorting to top slicing the licence fee.
But Thompson today questioned the legality of sharing BBCW's profits, and argued that in any case all the money that BBCW generates is required by the BBC.
He said that the BBC's charter requires it to return any un-used licence fee funds to the licence-fee payers, and use BBCW funds "to enhance the service that the licence fee pays for".
It is not for the BBC, BBC Worldwide, "and arguably not the BBC Trust" to overturn that system, he said.
Thompson also argued that there is no extra cash to spare – suggesting that giving a percentage of profits to C4 would damage the BBC.
"Let me tell you, [the funding the BBC gets from BBCW] is fully deployed. Every penny of that is needed to support our licence fee-funded operations in the UK."
Thompson's comments came at a press conference to launch the BBC's proposal to Ofcom about how PSB broadcasting should be shaped after digital switchover.
In the document the BBC offered to support its commercial rivals in various ways, including by exploiting international television rights on their behalf, through BBC Worldwide.
Thompson said in the proposal: "BBCW has already begun to explore ways of using its global scale and leverage to deliver stronger global revenues to other UK PSBs, and looks to take this idea further through open discussion within the sector."
However, it is unlikely that the plan will hold great appeal for C4, which as a publisher broadcaster does not own the rights to the programmes it airs, or for ITV which is currently working on its own plans to exploit rights internationally.
