[Community Television] C4 threat to cut PSB

Diane Reid diane.reid at commedia.org.uk
Thu May 19 11:24:48 BST 2005


>From today’s Financial Times
C4 in cash plea despite 45% profits increase

Channel 4 reported a profit increase of 45 per cent last year thanks
to popular programmes including Big Brother and The Simpsons but
reiterated its call for financial support from the government once the
switch-off of the analogue television signal begins in 2008.
Andy Duncan, chief executive of the publicly owned broadcaster that is
funded by advertising revenue, warned that some sort of additional
financial support would be necessary if C4 were to continue offering
public service broadcasting.
"If you want us to go down the commercial route we can do it by
cutting public service broadcasting. But both the government and Ofcom
(the media regulator) want C4 to continue playing the role it does
today," he said.
As more people watch digital TV offering multiple channels,
broadcasters fear the audience for each channel will fragment, leading
to a drop in advertising revenues. Personal video recorders, which
allow recording of programmes on to hard disks and make it easier to
fast-forward past advertisements, are also a threat to commercial
broadcasters.
Terrestrial commercial broadcasters, which have obligations to offer
public service broadcasting including art and religion that does not
bring in mass audiences, regard such programmes as a burden. Mr Duncan
said: "Other channels have got help - the BBC has had charter renewal;
ITV has had its public service broadcasting obligations reduced and is
now paying less in licensing."
His comments came as C4 posted pre-tax profits of Pounds 65.7m in the
year to December, up from Pounds 45.3m the previous year.

Diane

Diane Reid
Director
Community Media Association
Access to the media for people and communities
http://www.commedia.org.uk/

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