{"id":98180,"date":"2022-05-05T16:31:00","date_gmt":"2022-05-05T11:01:00","guid":{"rendered":"https:\/\/centralrecorder.com\/channel-4-makes-privatization-alternative-public\/"},"modified":"2022-05-05T16:31:00","modified_gmt":"2022-05-05T11:01:00","slug":"channel-4-makes-privatization-alternative-public","status":"publish","type":"post","link":"https:\/\/centralrecorder.com\/channel-4-makes-privatization-alternative-public\/","title":{"rendered":"Channel 4 Makes Privatization Alternative Public"},"content":{"rendered":"
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A privatized Channel 4 could lose the UK economy up to \u00a33BN ($3.8BN) over the next decade and support 4,000 fewer jobs, according to the It\u2019s a Sin <\/em>network\u2019s alternative privatization proposal, unveiled to journalists today.<\/p>\n

Channel 4 CEO Alex Mahon this morning publicly sent out and discussed the network\u2019s failed 4: The Next Episode<\/em>\u00a0plan, which was presented to Culture Secretary Nadine Dorries in February as a privatization alternative with detailed cost-benefit analysis. It was roundly rejected, as indicated in last week\u2019s UK government Broadcasting White Paper about the future of British television.<\/p>\n

According to analysis embedded in 4 The Next Episode<\/em>, <\/em>which also included a set of proposals for a reformed publicly-owned Channel 4, privatizing the network would create a total \u00a38BN-\u00a310BN for the UK economy over the next 10 years, compared with \u00a311BN if it was reformed and remained in public ownership.<\/p>\n

The most extreme scenario would thereby lead to a \u00a33BN gap, which would only be slightly mitigated by the circa-\u00a3500M value of the sale to the government.<\/p>\n

In the nations and regions, a privatized Channel 4 was estimated to make \u00a31BN-\u00a32BN, compared to \u00a33.5BN in public ownership. The number of jobs supported if Channel 4 is sold was forecast at 9,000 to 11,500, compared to 13,000 if public.<\/p>\n

Furthermore, Channel 4 said exportable\u00a0British IP would \u201cno longer be an organizational priority\u201d for a new buyer, while a reformed publicly-owned operation could create 100,000 jobs and \u00a3500M-\u00a31BN of production sector UK IP exports over the next decade.<\/p>\n

The likes of ITV, Discovery, Paramount and Sky-owner Comcast have been rumored as potential buyers of Channel 4, along with outside bets such as BBC Studios or European giants including Vivendi and Bertelsmann.<\/p>\n

JV Plan<\/strong><\/p>\n

4 The Next Episode\u00a0<\/em>set out Channel 4\u2019s groundbreaking plan to create a JV with an external investor that would commission British content and allow the network to retain the rights to its shows for the first time in its 40-year history. The plan was leaked to the Financial Times\u00a0<\/em>several weeks ago.<\/p>\n

Channel 4 said the plan had already started garnering interest and would have generated \u00a31BN in investment in British content over the next five-to-10 years, \u201cestablishing a one-stop shop for financing for independent production companies and reinvesting secondary sale of IP into domestic content commissioning.\u201d Over the same period, commissioning spend would increase by \u00a3300M, said Channel 4.<\/p>\n

\u201cThe JV would invest in British creative content, combining Channel 4\u2019s commissioning expertise, distinctive British flavour and \u2018shop window\u2019 for curated content with private capital,\u201d added the proposal.<\/p>\n

\u201cThese reforms will unlock capital that will drive a substantial increase to Channel 4\u2019s public contribution, spreading opportunity to people and parts of the country that are under-represented in our cultural institutions and on our screen.\u201d<\/p>\n

Much of the discussion around Channel 4 privatization has centered on its unique model in the UK\u2019s broadcasting landscape as a publisher-broadcaster, meaning it cannot produce its own shows and retain rights. The government is seeking to reform this model and would force a quota of just 25% of shows required to be made by third-party producers, leading to a fundamental reshaping of the landscape.<\/p>\n

The innovative\u00a04 The Next Episode <\/em>JV\u00a0plan was set alongside a wealth of other proposals to improve Channel 4\u2019s offering to the UK, including:<\/p>\n