Yahoo Finance Channel 4 boss dismisses prospect of 'media mogul' takeover
The boss of Channel 4 has played down the prospect of a takeover by a "deep-pocketed media mogul" after ministers took the first steps towards its privatisation.
Alex Mahon stepped up her defence as the Government begins weighing whether the broadcaster would have greater financial security outside state control.
Asked on BBC Radio 4's Media Show if the Culture Secretary, Oliver Dowden, was wrong to argue that privatisation would bring a big cash injection to Channel 4, Ms Mahon said: "I haven't seen any deep-pocketed media moguls come along and benefit public service institutions in the UK.
"That is not to say that they don't exist. But it is also true to say that we already spend much more on programming as a percentage of revenues than any other commercial competitor."
Mr Dowden has launched a review of the Bake Off broadcaster amid fears that its advertising-funded business model may not survive the rise of streaming behemoths such as Netflix and Disney+.
Meanwhile, Ms Mahon has warned that the channel's core purpose of serving younger viewers, investing in the regions and supporting the nation's burgeoning TV production sector, is at risk of "irreversible" damage if there is a shift into private hands.
Ministers are understood to believe Channel 5's ownership by the American media giant ViacomCBS is an example of how Channel 4 could prosper in private hands.
When asked about the comparison, Ms Mahon said: "We spend much more than Channel 5 on programming.
"There is a question of when you are focused on profit [compared to] when you are focused on public service, do you do things slightly differently?
"Channel 5 has done a great job of appealing to older people. It fulfills the public remit it is meant to fulfill, but it is very different to what we do because we are focused on the Paralympics and shows like It's A Sin... we have really in-depth, investigative news every night - that is very different to what you have on Channel 5 by Viacom."
Her comments came as small producers warned that privatising the broadcaster would threaten the TV and film industry's recovery from the pandemic.
Pact, the trade body for Britain’s TV and film producers, said a sale of the broadcaster would inflict financial harm on small production companies that rely on Channel 4's £500m programming budget.
The UK's TV industry had been booming prior to the pandemic following deals with streaming giants such as Netflix, but suffered a blow when the crisis hit as productions came to a juddering halt.
Channel 4, which is owned by the Government but makes its money from advertising, ploughs the majority of its profits back into programmes.
The almost 40-year-old broadcaster struck a deal with Pact two years ago that hands production companies full control over how programmes are sold abroad after appearing on Channel 4.
It does not make shows, instead relying on independent production companies to create dramas, documentaries and news programmes for its channels and streaming service.
John McVay, chief executive of Pact, took a swipe at the idea mooted by MPs that Channel 4 must be merged with a rival such as ITV to survive the threat of Netflix.
He said: "The current Government’s thesis that bigger is always better is an archaic concept from an analogue past.
"The Government’s plans to sell off Channel 4 will damage small businesses across the UK at a time when they are recovering from the pandemic and rebuilding their businesses."
John Whittingdale, the media minister, has denied that the Government wants to get rid of Channel 4.
He told Sky News: "This is about making sure that it has a long-term future in a very different world to the one which most people are familiar with.
"One of the requirements, I think, over the coming years is that Channel 4 needs to have access to the kind of capital investment needed in order to retain viewers."
