Oral Answers to Questions

Peter Bottomley Excerpts

Thursday 26th May 2022 Commons Chamber

[Julia Lopez]

I thank the hon. Gentleman for his question, but I know the Secretary of State’s reasoning for this decision better than he does. He also mis-characterises what was said at the Select Committee. He will be aware that Channel 4 is uniquely dependent on linear advertising, that it cannot own its own content, and that its borrowing sits on the public balance sheet. We think we have an opportunity to free it from some of those constraints to allow it to invest more in content to get private sector capital into the business, and we think that that will help to grow Channel 4, so that it can invest more in the businesses that he purports to care about.

[Sir Peter Bottomley (Worthing West) (Con)]

The Secretary of State said that she wanted to remove the straitjacket from Channel 4. Except for the opportunity to borrow, which I did not know Channel 4 had asked for, the only straitjacket is the public service remits. Will those be reduced in any way?

Can the Minister kindly tell the House why the aim to compete with Amazon and Netflix should be one of the purposes of Channel 4, especially if either Netflix or Amazon, or a similar-sized foreign-owned organisation, might buy Channel 4?

[Julia Lopez]

This is not necessarily about allowing Channel 4 to compete in exactly the same way as Netflix and Amazon; it is about understanding the changing market dynamics that those companies are creating. As I said in my previous answer, Channel 4 is uniquely constrained. Its borrowing would sit on the public balance sheet, but it also cannot own its content. We believe that in today’s market, it needs to be able to own its content in order to have much greater flexibility in how it runs its business, and getting private capital into the business would help it to do that. While people can bury their heads in the sand about the fundamental dynamics in the market, we are taking some difficult decisions, which we think are the right decisions to secure not only the future of the business, but the future of the kind of content that audiences in this country love.