Privatisation threatens Channel 4 move outside London, says CEO

Privatisation of Channel 4 would threaten the television station’s push to relocate operations from London to other parts of the UK, its chief executive said as she challenged ministers to provide evidence that a change in ownership would benefit its audience and the economy.

Speaking at the formal opening of its national headquarters in Leeds on Monday, Alex Mahon said the broadcaster was helping “level up” the economy by expanding outside the capital, including centres in Glasgow and Bristol.

“Under a purely profit driven model, it’s unlikely that that [geographical] spread would continue,” she said. “It’s not what you would do for commercial optimisation.”

Privatisation of Channel 4 “would impact more than just our programmes. It would likely affect the UK economy overall”.

Her comments came a week before the deadline for submissions to a consultation that the government is holding on a sale of the commercially funded yet publicly owned broadcaster.

Ministers have not made a final decision but have made clear that a change in ownership is their “preferred option”. Media minister John Whittingdale said the station would be better served if it had access to private sources of capital as it faces intensifying competition from Netflix and other streaming services.

Yet Mahon said the network had “never been in a stronger position — culturally or financially — than it is today”.

While recognising that privatisation was “ultimately not a decision for us to make”, she said the station had “not seen any evidence that the irreversible change in privatising Channel 4 will be in the interests of either the British audiences or the UK’s economy.”

Channel 4 argued its advertising-dependent business model was sustainable. Full-year revenues were expected to increase almost a fifth from 2020, and by 13 per cent from the pre-pandemic total in 2019. Sales in September were on track to be its largest month on record, at £120m.

The station is next year planning its highest content expenditure since 2016. Initiatives include doubling spending on current affairs programme Dispatches.

Nearly 400 Channel 4 roles — out of about 1,000 — would be located outside London by the end of this year, the station said.

Managers including Mahon, chief operating officer Jonathan Allan and chief content officer Ian Katz, will continue to be based in London, although Channel 4 said it was holding board meetings in Leeds.

Leeds was the UK base for the station’s 2020 Paralympic Games coverage and Channel 4 News is to be “co-anchored” from the city later this month.

Filming of First Dates had moved from London to Manchester and 24 Hours in A&E to Nottingham. A “major new comedy” based in Yorkshire is also in the works.

Channel 4 also set out targets to generate more revenues from its streaming service, All 4, saying it planned to generate at least 30 per cent of revenues from digital advertising by 2025, up from a forecast 19 per cent this year.

The channel added it was exploring plans to “supplement” revenue sources by expanding All 4 outside the UK.

The Department for Digital, Culture, Media and Sport said: “We value Channel 4’s contribution to levelling up and are clear that its PSB remit, as well as government’s commitment to independent regional productions, will continue following any potential sale.

“There is a wealth of evidence on the future challenges for linear TV broadcasters and it is right that a change in ownership that would better support Channel 4’s long-term success and sustainability is considered.”