Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, with reference to the Department's news story, It’s time to level up Britain’s screens, published on 23 June 2021, what evidence his Department used to inform the assessment that choice is no longer an issue for UK viewers.
Answered by John Whittingdale
There is a wealth of evidence set out in our consultation document that supports the case we have made about the evolving media landscape and the challenges this presents for linear TV broadcasters. Linear TV viewing is down almost 60% amongst 16-25 year olds since 2010, whilst 16-34 year olds now spend almost twice as much time on YouTube and subscription VoD services than they do with broadcast content. There are now 315 channels, compared to 5 in 1982 when Channel 4 was established. Linear TV advertising revenues - which constituted 74% of Channel 4’s revenue in 2020 - have declined across the sector at a compound annual rate of 2.5% since 2015.
Moreover, Ofcom, in their latest recommendations to Government on the future of public service media, outlined what it called the ‘rapid change in the industry – driven by global commercial trends and a transformation in viewing habits - [which] is making it harder for public service broadcasters to compete for audiences and maintain their current offer”.
It is against this backdrop that the Government is taking action through a strategic review of the UK’s public service broadcasting system, with plans to bring forward a White Paper in the Autumn, to ensure that our traditional public service broadcasters are equipped to retain their place at the centre of the UK’s media ecosystem.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps he is taking to ensure that under a potential change in ownership model Channel 4 would maintain its focus on producing content that appeals to young people.
Answered by John Whittingdale
Channel 4’s current remit and obligations are largely based on the key building blocks for public service broadcasting as set out in the 2003 Communications Act, with further changes made in the 2010 Digital Economy Act. The Government has made clear in the consultation that it intends to preserve Channel 4’s PSB remit.
The consultation also makes clear that the Government sees the value delivered to society through the obligations placed on Channel 4 to broadcast content appealing to young and diverse audiences. Indeed, we would expect the channel’s success with younger audiences to be something particularly appealing to potential buyers.
The Government is minded to retain such obligations, though it will be important to ensure its remit does not prohibit Channel 4’s future sustainability and its ability to broadcast relevant and quality content given the developments in the media landscape – with young audiences increasingly likely to consume content on non-linear platforms such as VoD services for example.
We are seeking views on the possible modernisation of Channel 4’s remit and obligations through the consultation.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps he is taking to ensure that under a potential change in ownership model Channel 4 would maintain its current levels of investment in skills and productivity for young people.
Answered by John Whittingdale
The Government believes that a change in ownership could allow Channel 4 the best chance of responding effectively to current market dynamics and opportunities, with greater access to capital and more scope to form strategic partnerships and expand internationally.
We all have a role to play in ensuring that the UK has an effective skills system that meets the needs of employers and learners - including young people - and that everyone with talent and ambition, regardless of their background, should have the opportunity to build a successful career in the Creative Industries.
A thriving, sustainable Channel 4 could offer the best prospects for long term job creation for young people in the creative economy. That is why we are considering potential reform to gather views and evidence on how the channel’s future sustainability can be achieved.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment his Department has made of the potential risk that the privatisation of Channel 4 would lead to the loss of distinctive UK content and a shift towards generic content tailored to an international audience.
Answered by John Whittingdale
The government is currently consulting on issues around the channel’s publisher-broadcaster restriction, its contribution to levelling up, and its remit.
We will use the responses to our consultation, and evidence received through it, to inform our decision-making. As such, it would not be appropriate for us to carry out an impact assessment until we have considered the responses and answered the questions set out in the consultation - until then, we do not know what specific impacts we are assessing.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if he will make and publish the results of an assessment of the potential effect that a change in Channel 4’s ownership model may have on the levelling up of the UK’s creative sector outside of London.
Answered by John Whittingdale
The government is currently consulting on issues around the channel’s publisher-broadcaster restriction, its contribution to levelling up, and its remit.
We will use the responses to our consultation, and evidence received through it, to inform our decision-making. As such, it would not be appropriate for us to carry out an impact assessment until we have considered the responses and answered the questions set out in the consultation - until then, we do not know what specific impacts we are assessing.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if he will conduct and publish the results of an assessment of the potential impact of revising Channel 4’s publisher-broadcaster model on (a) the UK production sector as a whole, (b) small and medium-sized production companies and (c) UK production companies based outside of London.
Answered by John Whittingdale
The government is currently consulting on issues around the channel’s publisher-broadcaster restriction, its contribution to levelling up, and its remit.
We will use the responses to our consultation, and evidence received through it, to inform our decision-making. As such, it would not be appropriate for us to carry out an impact assessment until we have considered the responses and answered the questions set out in the consultation - until then, we do not know what specific impacts we are assessing.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps he is taking in relation to securing the contribution that Channel 4 makes to the UK’s creative economy through its (a) regional offices and employees, (b) 50 per cent commissioning spend outside of London and (c) investment in skills and apprenticeships across the country.
Answered by John Whittingdale
We value Channel 4’s contribution to the UK’s creative economy, and the consultation clearly states that we consider a continued and renewed commitment to it will be appropriate to any potential change of ownership.
We have also been clear that whatever Ministers decide, Channel 4 will continue to have a Public Service Broadcasting (PSB) remit. Currently all national PSBs, including those that are privately owned, have quotas for content outside of the M25.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what recent discussions (a) he and (b) officials in his Department have had with UK production companies on the potential impact that privatising Channel 4 may have on the future of the production sector.
Answered by John Whittingdale
The government recognises that Channel 4 has consistently delivered on its remit in the decades since being established, including supporting the UK’s independent production sector.
Forty years on, this sector is now flourishing. Independent production is increasingly less reliant on income from UK public service broadcasters, and will continue to be in demand for the high-quality, differentiated, distinctively British content it produces. In the 10 years between 2008 and 2018, the contribution of PSB commissions to sector revenue fell from 64% to 42%, due in large part to the growth of international revenue.
Potential reform of the publisher broadcaster restriction could enable Channel 4 to achieve greater financial diversification that will support its growth and long term sustainability, therefore increasing its ability to invest in UK content and the creative industries.
We are consulting on this so the government may take into account a broad range of evidence and views to shape its policy-making. Both officials and Ministers have also met regularly with key stakeholders from within the production sector, including PACT.
Whatever decision we make, it will not compromise this Government’s commitment to the independent production sector and wider creative economy. Our support for the UK film and TV industry has helped it bounce back from the impact of the pandemic when it had to shut-down in March 2020. For Q4 2020 the UK film and TV industry had the second highest production spend for any quarter on record - at £1.19 billion.
Last year, the government invested over £1 billion through the creative sector tax reliefs which support the UK screen sectors. In High-End TV, the UK has seen a production boom worth over £4 billion since a dedicated tax relief was introduced in 2013.
More than 600 productions have been supported by the government’s UK Film and TV Production Restart Scheme, protecting over 55,000 jobs and securing £1.9 billion of production spend.
Asked by: Helen Grant (Conservative - Maidstone and The Weald)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps he is taking to ensure that a potential change to Channel 4’s publisher-broadcaster model will not negatively effect businesses and employment in the UK’s production sector.
Answered by John Whittingdale
The government recognises that Channel 4 has consistently delivered on its remit in the decades since being established, including supporting the UK’s independent production sector.
Forty years on, this sector is now flourishing. Independent production is increasingly less reliant on income from UK public service broadcasters, and will continue to be in demand for the high-quality, differentiated, distinctively British content it produces. In the 10 years between 2008 and 2018, the contribution of PSB commissions to sector revenue fell from 64% to 42%, due in large part to the growth of international revenue.
Potential reform of the publisher broadcaster restriction could enable Channel 4 to achieve greater financial diversification that will support its growth and long term sustainability, therefore increasing its ability to invest in UK content and the creative industries.
We are consulting on this so the government may take into account a broad range of evidence and views to shape its policy-making. Both officials and Ministers have also met regularly with key stakeholders from within the production sector, including PACT.
Whatever decision we make, it will not compromise this Government’s commitment to the independent production sector and wider creative economy. Our support for the UK film and TV industry has helped it bounce back from the impact of the pandemic when it had to shut-down in March 2020. For Q4 2020 the UK film and TV industry had the second highest production spend for any quarter on record - at £1.19 billion.
Last year, the government invested over £1 billion through the creative sector tax reliefs which support the UK screen sectors. In High-End TV, the UK has seen a production boom worth over £4 billion since a dedicated tax relief was introduced in 2013.
More than 600 productions have been supported by the government’s UK Film and TV Production Restart Scheme, protecting over 55,000 jobs and securing £1.9 billion of production spend.