Asked by: Lord Archbishop of York (Bishops - Bishops)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty's Government what steps they will take to ensure that a privatised Channel 4 will continue to have a duty to deliver diverse religious and ethical content.
Answered by Lord Parkinson of Whitley Bay - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)
The consultation document on a potential change of Channel 4’s ownership outlined that Her Majesty’s Government sees the great value delivered to society through the remit obligations placed on Channel 4 to broadcast content which appeals to a diverse society.
Her Majesty’s Government has been very clear that it wants Channel 4 to remain a Public Service Broadcaster, with obligations and benefits similar to others – both public and privately-owned – so that it continues to make an important social, economic and cultural contribution to the UK.
Moreover, Her Majesty’s Government considers that Channel 4’s ability to reach a diverse range of audiences is a strength to be celebrated and maintained, and that this is not at odds with private investment – in fact, this is an important facet of Channel 4’s brand which is likely to be an attractive asset to nurture and develop for any potential buyer.
It is important to note that, notwithstanding the above, Channel 4 does not currently have a specific duty to deliver diverse religious and ethical content, though it may choose to do so as part of its overall contribution to the public service remit for television.
Her Majesty's Government will set out the future plan for Channel 4 in a White Paper shortly.
Asked by: Ruth Jones (Labour - Newport West)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what recent discussions she has had with the Welsh government on proposals to privatise Channel 4.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government consulted extensively on a change of ownership of Channel 4, and the views and evidence gathered from a wide range of stakeholders – including from stakeholders in Wales – has informed the government’s assessment and wider policy-making.
Following this consultation, the Secretary of State has come to a decision that, although Channel 4 as a business is currently performing well, public ownership is holding it back in the face of a rapidly-changing and competitive media landscape. The Secretary of State has consulted with Cabinet colleagues on that decision.
The Government will set out its plan for Channel 4 in a White Paper shortly. The Government will also publish a rationale for its decision regarding Channel 4’s ownership model.
Asked by: Steve McCabe (Labour - Birmingham, Selly Oak)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the ability of Channel 4 to compete with Netflix and Amazon following the privatisation of that station.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The arrival in the UK of global media and streaming groups means that Channel 4, as with other public service broadcasters (PSBs), faces growing competition for audiences, programmes and talent from new global groups with greater spending power. Netflix, for example, spent £779m on UK original productions in 2020, over two times more than Channel 4.
Channel 4 and these global streamers are necessarily different, but the markets Channel 4 operates within have been radically changed by the arrival of such competitors, and Channel 4 will need different tools to succeed in the future.
Under its current ownership model, Channel 4 has limited ability to borrow money or raise private sector capital by issuing shares. The current setup also effectively stops Channel 4 from making its own content. This means Channel 4 is heavily reliant on advertising revenues which are cyclical and also moving to digital platforms - linear TV ad revenues fell 31% from 2015 to 2020.
Private ownership could allow Channel 4 to diversify its revenue through greater access to capital and an ability to make and own content. This would drive investment at greater pace into content and technology, allowing it to compete more effectively with the likes of Netflix and Amazon without losing what makes Channel 4 so distinctive. The required investment to do this at scale and pace is best provided under private ownership, rather than leaving taxpayers exposed to the associated risk under public ownership.
The Government will set out the future of Channel 4 in a White Paper shortly.
Asked by: Steve McCabe (Labour - Birmingham, Selly Oak)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment her Department has made of the potential impact of the privatisation of Channel 4 on his policies on levelling up in the context of that station’s employment scheme for disadvantaged people living outside London and the relocation of its headquarters to Leeds.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government values Channel 4’s work in developing skills and talent pipelines, particularly in the nations and regions, through schemes like 4Skills. The Government would expect any new owner to have a business interest in continuing to support the development of talent and skills across the UK creative industries.
The Government will set out the future plan for Channel 4 in a White Paper shortly.
Asked by: Steve McCabe (Labour - Birmingham, Selly Oak)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will take steps ensure that Channel 4 will commit to implementing programmes similar to the 4Skills scheme once that station has been privatised.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
The Government values Channel 4’s work in developing skills and talent pipelines, particularly in the nations and regions, through schemes like 4Skills. The Government would expect any new owner to have a business interest in continuing to support the development of talent and skills across the UK creative industries.
The Government will set out the future plan for Channel 4 in a White Paper shortly.
Asked by: Chris Elmore (Labour - Ogmore)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the implications for her policies of Netflix’s loss of 200,000 subscribers and more than 35 per cent fall in market value in the first quarter of 2022 compared with Channel 4’s streaming growth of 23 per cent in 2021.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
Netflix’s first quarter results for 2022 saw overall subscriber numbers decline for the first time in many years. The company put this down to a number of factors including increased competition from new streaming services.
These results highlight the ever more competitive environment that even well-funded global players face.
Though Channel 4 has been reporting strong digital growth, its current ownership and operating model constrain its ability to respond to these market dynamics. The Government believes that having greater access to capital under private ownership and the ability to produce and sell its own content will give Channel 4 the best range of tools to succeed for decades to come.
The Secretary of State for Digital, Culture, Media and Sport has consulted with Cabinet colleagues on their decision to pursue a change of Channel 4’s ownership model. The Government will set out the future plan for Channel 4 in a White Paper shortly.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps her Department has taken to consult the public on its decision to privatise Channel 4.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
As a self-financing public corporation, under its current ownership model, Channel 4 is publicly-owned but commercially run.
Following an extensive public consultation, the Secretary of State for Digital, Culture, Media and Sport has come to a decision that although Channel 4 as a business is currently performing well, public ownership is holding it back in the face of a rapidly-changing and competitive media landscape.
The Secretary of State for Digital, Culture, Media and Sport has consulted with Cabinet colleagues on that decision. The Government will publish its consultation response shortly, and set out the future plan for Channel 4 in a White Paper.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if she will publish the results of her Department's consultation on a change of ownership of Channel 4 Television Corporation.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
As a self-financing public corporation, under its current ownership model, Channel 4 is publicly-owned but commercially run.
Following an extensive public consultation, the Secretary of State for Digital, Culture, Media and Sport has come to a decision that although Channel 4 as a business is currently performing well, public ownership is holding it back in the face of a rapidly-changing and competitive media landscape.
The Secretary of State for Digital, Culture, Media and Sport has consulted with Cabinet colleagues on that decision. The Government will publish its consultation response shortly, and set out the future plan for Channel 4 in a White Paper.
Asked by: Kate Osamor (Independent - Edmonton)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, with reference to her oral evidence to the Digital, Culture, Media and Sport Committee of November 2021 that Channel 4 is in receipt of public money, if she will confirm what public funding Channel 4 receives.
Answered by Julia Lopez - Minister of State (Department for Science, Innovation and Technology)
As a self-financing public corporation, under its current ownership model, Channel 4 is publicly-owned but commercially run.
Following an extensive public consultation, the Secretary of State for Digital, Culture, Media and Sport has come to a decision that although Channel 4 as a business is currently performing well, public ownership is holding it back in the face of a rapidly-changing and competitive media landscape.
The Secretary of State for Digital, Culture, Media and Sport has consulted with Cabinet colleagues on that decision. The Government will publish its consultation response shortly, and set out the future plan for Channel 4 in a White Paper.
Asked by: Ruth Jones (Labour - Newport West)
Question to the Wales Office:
To ask the Secretary of State for Wales, whether he has had recent discussions with Cabinet colleagues on the potential impact of the privatisation of Channel 4 on residents in Newport West constituency.
Answered by Simon Hart - Parliamentary Secretary to the Treasury (Chief Whip)
I have regular discussions with Cabinet colleagues on a range of matters, including on matters relating to public service broadcasting and the ownership of Channel 4.
The Government consulted extensively on a change of ownership of Channel 4, and the views and evidence gathered from a wide range of stakeholders – including from stakeholders in Wales – have informed the Government’s assessment and wider policy-making.
Following this consultation, the Culture Secretary has come to a decision that, although Channel 4 as a business is currently performing well, public ownership is holding it back in the face of a rapidly-changing and competitive media landscape.
The Government will set out the future of Channel 4 in a White Paper shortly.