Dowden defends Channel 4 sale against advertiser criticism

[ad_1]

Media Updates

Sign up for myFT Daily Digest to be the first to know about media news.

Britain’s Culture Secretary will face criticism of the government’s plans to privatize Channel 4, after senior advertising officials urged the Prime Minister to rethink his plans to overhaul the station’s ownership model.

In his first public comments since launching a consultation on a change in broadcaster ownership, Oliver Dowden will argue Wednesday that “a Stockport or Southend grandmother” should not have to make the necessary investments to compete with Netflix.

Dowden’s address at the Royal Television Society conference in Cambridge will come after advertisers upped the stakes in their campaign to prevent the privatization of Channel 4, arguing ahead of the minister’s speech that the UK government had failed to plead the case.

In its submission to the government consultation, which ended Tuesday evening, the Incorporated Society of British Advertisers said it was “important” that the channel could be sold to another UK broadcaster, like ITV or Sky. He added that such a decision would reduce competition.

Isba also said there was a “substantial risk” that Channel 4’s programming appealing to a young and diverse audience would be “diluted and challenged over time” in the hands of the private sector.

In his speech, Dowden will argue that without additional money, Channel 4 “will not be able to compete with the streaming giants”, and the funding could “either come on the backs of the taxpayer or come from private investments”.

“I don’t think a commercial TV station loan should be taken out by a grandmother in Stockport or Southend.”

Executives from across the UK advertising industry signed a letter to Dowden and Prime Minister Boris Johnson, saying a sale would be “shortsighted”.

“We ask you to think again,” read the letter, whose signatories included executives from advertising groups Publicis, Havas and M&C Saatchi. “The broadcaster’s current structure allows it to provide advertisers with a brilliant platform to grow their brands and boost the UK economy.”

Phil Smith, Managing Director of Isba, whose members include Asda, Barclays, McDonald’s, Procter & Gamble and Unilever, said: “Far from being niche concerns for advertisers, these concerns are widely shared. We sincerely hope that ministers are listening.

In response to the consultation, Channel 4 said it had concluded that there was “no evidence” that privatization would benefit “the UK public or the UK economy”, adding that it “could indeed cause them harm. wrong”.

advised

Channel 4 said it was in a strong financial position, predicting revenue this year to be 13% above pre-pandemic levels in 2019, and to exceed £ 1 billion for the first time in its history thanks to part of its digital revenues. .

While the broadcaster acknowledged that the audience for traditional television was in decline, it argued that it was “addressing these challenges more effectively than our competitors”.

In his speech, Dowden will acknowledge that “currently Channel 4 is in a stable position”, but will add, “I think too many people are obsessed with the current situation of Channel 4. I am much more concerned about its long-term future. term.

Dowden will also seek to reassure television industry dignitaries that Channel 4 would retain its public service obligations in the event of privatization, including its commitment to news and current affairs and commissioning independent producers. It must remain “representative of the whole nation”, he will say.

[ad_2]