Ofcom Expresses Concern Over Channel 4 Financing

LONDON, June 15: British media regulator Ofcom is
considering the long-term options for Channel 4, noting that the broadcaster’s
funding model “is likely to become unsustainable.”

In a statement, Ofcom said that there was “no evidence of
immediate insurmountable pressures on the broadcaster’s ability to deliver its
public-service remit,” but that it would monitor Channel 4’s financing over the
next few years. The regulator notes that from 2010, Channel 4’s commercial
performance “is likely to deteriorate, placing significant pressure on its
ability to deliver its PSB remit.”

Ofcom is urging the Channel 4 board to “significantly
develop the ways in which it assesses the broadcaster’s remit delivery and
public service contribution.” Ofcom will assist the Channel 4 board in this
process.

Ofcom CEO Ed Richards noted: “We are concerned that Channel
4 may not be able to fulfill its public service purpose in future. The next
phase of our work will be to ask what Channel 4’s purpose should be in the
longer term, and what the best way is to achieve it. Ahead of this we need to
significantly improve our ability to monitor and to assess its remit and ensure
it is delivered effectively across a full range of programs.”