As you are aware, Channel 4 is entirely commercially funded, but it has been publicly owned since it began broadcasting in 1982. Channel 4 has been successful over the years in delivering the aims set out at its creation, including supporting the independent production sector in the UK, delivering diverse and risk-taking content, and contributing to the wider public goals of public service broadcasting.
The main reason Channel 4 was set up as a publicly owned, commercially run, station was to provide greater choice. Today, the broadcasting landscape is different: audiences can watch what they want, whenever they want, how they want, across a range of internet-enabled personal devices. The independent production sector has also grown significantly, so that it now supplies content to a wide range of broadcasters and streaming services.
In this context, the Culture Secretary has decided that Government ownership is holding Channel 4 back from competing against streaming sites such as Netflix and Amazon. Her view is that a change of ownership will give Channel 4 the freedom to be successful as a public service broadcaster long into the future. I understand further details will be set out in a White Paper in due course and I look forward to scrutinising them.
The Culture Secretary has also indicated that she will seek to use the proceeds of the sale to level up the creative sector. By investing money into independent production and creative skills in priority parts of the country, this will deliver a creative dividend for all. It is noteworthy that the UK made more films than Hollywood in the last quarter of 2021 and with many more studios opening in the UK, delivering funding will be key.