Channel 4 Makes Privatization Alternative Public: Says Sale Could Lose UK Economy Up To $3.8BN Over Next Decade
05.05.2022 - 14:07
/ deadline.com
A privatized Channel 4 could lose the UK economy up to £3BN ($3.8BN) over the next decade and support 4,000 fewer jobs, according to the It’s a Sin network’s alternative privatization proposal, unveiled to journalists today.
Channel 4 CEO Alex Mahon this morning publicly sent out and discussed the network’s failed 4: The Next Episode plan, which was presented to Culture Secretary Nadine Dorries in February as a privatization alternative with detailed cost-benefit analysis. It was roundly rejected, as indicated in last week’s UK government Broadcasting White Paper about the future of British television.
According to analysis embedded in 4 The Next Episode, which also included a set of proposals for a reformed publicly-owned Channel 4, privatizing the network would create a total £8BN-£10BN for the UK economy over the next 10 years, compared with £11BN if it was reformed and remained in public ownership.
The most extreme scenario would thereby lead to a £3BN gap, which would only be slightly mitigated by the circa-£500M value of the sale to the government.
In the nations and regions, a privatized Channel 4 was estimated to make £1BN-£2BN, compared to £3.5BN in public ownership. The number of jobs supported if Channel 4 is sold was forecast at 9,000 to 11,500, compared to 13,000 if public.
Furthermore, Channel 4 said exportable British IP would “no longer be an organizational priority” for a new buyer, while a reformed publicly-owned operation could create 100,000 jobs and £500M-£1BN of production sector UK IP exports over the next decade.
The likes of ITV, Discovery, Paramount and Sky-owner Comcast have been rumored as potential buyers of Channel 4, along with outside bets such as BBC Studios or European giants including Vivendi