Blog: C4 and PSB
- Published: 25 October 2007 17:46
- Last Updated: 29 October 2007 08:58
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City University’s Dr Petros Iosifidis argues that C4’s public service remit needs to be safeguarded by funding directly by the government.
Public service broadcasting is under attack – its monopoly status is long gone, its legitimacy is eroded and its public mandate is questioned. Public channels that formerly enjoyed protection are now faced with unprecedented levels of competition from new channels. The resulting shift of viewing towards the small and ‘niche’ has put great strain on established public broadcasters and the emerging question is whether we still need these institutions.
PSB will only be sustainable if it delivers innovative, diverse and popular programming which has the potential to reach a significant audience in the digital era. But how should it be funded? Which funding model can ensure wide viewer accessibility and promote programming distinctiveness, while at the same time securing adequate income for the long-term survival and development of public broadcasters?
Looking at the models of six European countries - France, the UK, Spain, Sweden, Ireland and Greece - I would argue that public funding through the licence fee is the most suitable form of funding for public broadcasting.
Justification for the licence fee though may no longer be attainable on its present scale once digital switchover has been achieved. Many more channels will seek our attention after 2012 and the resulting intense competition will inevitably reduce further public channels’ audience shares. This robust method of funding will then be under more pressure. Two solutions have been put forward.
The first is to encourage public channels to generate revenues from other activities, such as modernising their operations and improving the efficiency of various departments to reduce operating expenses. The second is to fund new digital initiatives through subscriptions, while maintaining the licence fee for the core services.
C4's budget deficit
Channel 4 is a commercially-funded public service broadcaster with a statutory remit to demonstrate cultural diversity, innovation, experiment and creativity. As such it is not charged for the spectrum it uses, but unlike the BBC it is not funded by the licence fee and receives no direct government subsidy. Similarly to other public and private broadcasters C4 faces market, technological and competitive pressures in the multichannel world, including the downward pressure on its audience share brought about by digital take-up.
It responded to these challenges by launching digital television services such as More 4, E4 and Film 4 and by developing opportunities for commercial ventures. However, its future viability is threatened as it faces a £100m a year deficit by 2009. The then culture secretary Tessa Jowell’s June 2007 decision to give the channel £14m over the next six years (with the money coming from licence fee payments) will help but will not in itself overcome its severe funding gap.
Jowell said that C4 has a role to play in public service broadcasting, echoing demands made by Ofcom. Indeed, C4’s distinctive role should be maintained. This is essential given that recently C4 has been accused of ‘dumbing down’ as evidenced by closing its multi-cultural department and airing programmes such as Big Brother.
The government should encourage its ambition to extend its public service broadcasting role across new channels and media platforms. Given that viewers care most about news and children’s TV (Ofcom’s 2004 conclusions), Channel 4 News should be publicly-funded to ensure the broadcaster’s funding difficulties do not adversely affect the quality of the programme. Despite the wide availability of television news, there is uneven provision of regional news or news targeting younger viewers, areas where C4 scores high.
This is a key area which should be protected, alongside the BBC’s significant role in the provision of children’s TV.
Dr Petros Iosifidis is director of postgraduate media and communication programmes at City University London. His new book, Public Television in Europe: Technological Challenges and New Strategies is published by Palgrave Macmillan.
