Channel 4 Privatisation

Lord Newby Excerpts

Tuesday 5th April 2022 Lords Chamber

[Lord Parkinson of Whitley Bay (Con)]

I am not sure that all my noble friend’s constituents might phrase it like that. As I said to the noble Lord, Lord Bassam, the risk of doing nothing is to leave Channel 4 reliant on linear advertising. Currently 74% of its income comes from linear advertising, which is part of the broadcasting landscape that is changing rapidly. It is trying to compete with the likes of Netflix, which spent £9.2 billion on original content in 2019, compared with £2.1 billion by all the UK’s public service broadcasters. We want to ensure that Channel 4 is fit for the future so that it can continue to thrive and flourish.

[Lord Newby (LD)]

My Lords, in his initial Answer the Minister said that the current structure of Channel 4 was holding it back and that there was an urgency to move now. Yet in its own evidence to the Government, Channel 4 said that it had

“proposed a vision for the next 40 years”

seeking to

“build on the successes of the first 40”.

That is from the management of Channel 4. Why do the Government think they know better than the management of Channel 4 about its future?

[Lord Parkinson of Whitley Bay (Con)]

My Lords, the Government recognise the huge success that Channel 4 has been over the last 40 years. We want to make sure that it is fit for the future. Sometimes people who are close to organisations can be restricted in their thinking because of it. A responsible Government are looking to the next 40 years and the rapidly changing media landscape to ensure that Channel 4 has access to private capital to borrow, invest and continue to do what it is rightly renowned for.