Channel 4: Consultation

Lord Birt Excerpts

Tuesday 16th November 2021 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord mentions the work done by Ernst & Young. Our analysts, UKGI, and our corporate finance advisers, JP Morgan, take a different view and that is why we are taking a range of views on the suggestions. On the work that Channel 4 does across the United Kingdom, I say simply that Channel 4’s strengths in this regard are to be celebrated and maintained, and that is not at odds with private investment; in fact, Channel 4’s access to networks outside London and its ability to speak to such a diverse range of audiences are likely to be attractive assets to nurture and develop for any potential buyer, if that is the route we go down.

[Lord Birt (CB)]

My Lords, there is a meme of the moment that Channel 4 and, indeed, the BBC are being marginalised by the awesome economic power of Netflix. Does the Minister accept that Netflix’s programme proposition, though wholly admirable, bears no relationship whatever to the breadth of the public service propositions offered by both Channel 4 and the BBC? Moreover, will the Minister remind his department that in terms of hours of consumption per adult per week, far from being marginalised, the BBC enjoys six times the consumption of Netflix, and that Channel 4 is level-pegging?

[Lord Parkinson of Whitley Bay (Con)]

The noble Lord speaks with great experience of the sector. I am about the same age as Channel 4; the environment in which it was launched in 1982 was very different from the environment now. The Government should never stand still when it comes to ensuring the success of our public service broadcasters and the growth of competitors such as Netflix, as the noble Lord mentioned. That is why it is appropriate to reflect on Channel 4’s future and consider whether the current model gives it the best chance to succeed in the new environment as we seek to ensure that it is set up for success for decades to come.