The UK government has confirmed that it plans to sell – or, privatize – Channel 4. But why is this happening? Let’s find out…
Like the BBC, Channel 4 – since its inception – has been owned by the UK government. But unlike the BBC, Channel 4 is monetized with adverts. This week the government confirmed its plans to sell Channel 4, effectively privatizing the service. But what motivated this decision? Why now? And how has it been perceived?
The decision to privatize Channel 4 is mostly down to increased pressure from streaming platforms like Netflix, Disney+, and Amazon Prime Video. People just don’t “watch” TV in the same way anymore, or so the theory goes – and the government wants to ensure Channel 4 is better able to compete with firms like Netflix.
In an official statement on the privatization, the UK government said selling off Channel 4 would “remove its straitjacket” and allow it to better compete with the likes of Netflix. Similarly, Nadine Dorris, Culture Secretary, tweeted that government ownership was “holding Channel 4 back from competing against streaming giants like Netflix and Amazon”.
The clear messaging here is simple enough: streaming is now the future, services like Netflix, and the government doesn’t believe that Channel 4 in its current guise is in a good place to compete with these newer platforms. But is this the case? Channel 4 execs, for one, aren’t too happy with the government’s decision; its official stance is that it is “disappointed” with the decision to privatize.
Channel 4 Writers & Content Creators Revolt Against Decision
Channel 4 has been a huge part of UK culture since its inception in 1982 and is responsible for not only launching the careers of some of the UK’s biggest and most respected names, but also some of its best TV shows, documentaries, and comedies. In this respect, Channel 4’s contribution to the UK’s modern media culture cannot be understated.
For this reason, it is easy to see why many content creators and show leads are angered by the move. Twitter has been awash with tweets criticizing the government’s move to sell off what many view as an “incredible UK asset” to one of the market’s big media corporations.
Channel 4 Sale Backlash – Who Said What About The Privatisation
They asked for ‘a debate’; 90% of submissions in that debate said it was a bad idea. But still they go ahead. Why do they want to make the UK’s great TV industry worse? Why? It makes no business, economic or even patriotic sense.Armando Iannucci
Philippa Childs, the head of the broadcasting, entertainment, communications and theatre union, described the action as a “short-sighted sale of an incredible UK asset”.Philippa Childs
It is bad for the diversity of television, bad for viewers and bad for independent producers.Tory MP Sir Peter Bottomley
Not everyone is against the move, however. Baron Grade of Yarmouth, who was the channel’s chief executive between 1988 and 1997, says the move to sell Channel 4 is the only way to ensure its long-term survival and profitability.
Channel 4 needs to do what every other free-to-air advertiser-supported business is doing, which is to own its own IP and to be able to gain scale. Everything in the Channel 4 constitution presently is against that and therefore it will, in my view, in a very short time really begin to struggleBaron Grade of Yarmouth
Who Will Buy Channel 4?
The sale of Channel 4 has only just been confirmed by the government, so nothing concrete is yet known about potential buyers. As you’d expect, Rupert Murdoch has been linked to a possible takeover, as has Channel 5, Paramount, Amazon, Netflix, ITV, and Discovery.
But this does mean that Channel 4 could be operated and owned by a non-UK company. In fact, this is increasingly looking like the most likely outcome. The only question now is who will buy Channel 4 and, more specifically, how much will they be willing to pay for it?
Richard Goodwin has been working as a tech journalist for over 10 years. He is the editor and owner of KnowYourMobile.
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