It has been said that Channel 4 might be privatised in the near future, which would probably have a significant impact on the way that Channel 4 is operated and subsequently the content it produces.
How will channel 4 possibly change?
It is useful to apply the media economic approach that Lee and Jin discussed in their book Understanding the Business of Global Media in the Digital Age to analyse Channel 4’s possible future operation pattern. The Rt Hon Oliver Dowden, Secretary of State for Digital, Culture, Media and Sport, indicated that Channel 4 plays a vital role in supporting small and medium creative companies in the UK. After privatised, the organisation’s chief goal might switch from promoting UK’s creative content to simply making more money, just as every business organisation will do.
What I would say is, when you run a business for profit and for return to shareholders, you tend to have a different set of priorities. It’s not to say that those priorities are wrong, is just that our priorities are about the public. And we put public purpose above profit.
Alex Mahon, Channel 4 facing privatization?
Similar to what Alex Mahon has said, the privatised Channel 4 might not use its income to assist the UK independent companies and support the local creative sector. Instead, it will maximise its own interests, which is making as much money as it can.
In terms of the financing mode, Channel 4 might also face a transformation. As Grossberg et al. pointed out, ‘the key to media profits is access’; more precisely, access usually refers to either providing consumers access to the selling media products or giving advertisers access to their potential consumers through the media products. The current Channel 4 is free to the public; thus, the main way for it to get funding is through advertisements, which accords with what Channel 4 says on its website. Notably, like Netflix and Disney, Channel 4 also has a streaming service; however, if it gets privatised and starts putting its emphasis on making more profits, it might possibly change from freely watching to a subscription billing model. Ultimately, it will impact the content that Channel 4 produces.
How the Content Will be Impacted After Privatisation?
The potential impacts could be seen in the innovation of the content and the target groups of the content.
Before discussing the impacts, it is necessary to be aware of the great values of Channel 4. One of its significant values is producing content of diversity, innovation and risk-taking for the regions and nations of the UK. However, if Channel 4 is no longer a non-profit organisation, it might not be able to encourage people to take risks and produce new content. That is because it is not safe for a business organisation to take too many risks and produce content that cannot be ensured its reputation.
Using The Great British Bake Off as an example to analyse this impact would be easy to understand that the privatised Channel 4 might not want to take risky actions and it might use homogeneous formulas to keep creating The Great British Bake Off series to safely and ‘efficiently’ make money. The forms of The Great British Bake Off series might not have too many changes and differences.
Also, the target groups of the content might be broadened to a wider range of international audiences because of further profits. The series might be made into regional and national special series while still using the previously made formulas, such as Say Yes To The Dress India, which was reviewed as ‘a staid but well-packaged and presented show’. In this case, the quality and reputation of content might be safely ensured in a short-term period while it loses the opportunity to bring up refreshing and innovative ideas.
Considering the above points, the privatisation of Channel 4 might be seen as a challenge rather than a chance.