Asked by: Jesse Norman (Conservative - Hereford and South Herefordshire)
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 impact of the privatisation of Channel 4 on its annual levels of investment in independent television and film production companies.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
The Government consulted extensively on the future of Channel 4, and the views and evidence gathered from a wide range of stakeholders has informed the government’s assessment of any potential impact of a change of ownership. The Government published its sale impact analysis on 28 April.
Channel 4 has done an excellent job in supporting the UK production sector and thereby delivering on one of its founding purposes. Forty years on, independent production in the UK is now booming, with revenues having grown from £500 million in 1995 to £3 billion in 2019. Companies are increasingly less reliant on Public Service Broadcasters (PSBs), including Channel 4 for commissions.
Channel 4 still has an important part to play in supporting the sector and our wider creative economy. Channel 4 will still be required to commission a minimum volume of programming from independent producers, in line with the quotas placed on other PSBs.
Channel 4 has strong relationships with independent producers right across the UK and there is no reason this should change. The Government expects a new owner to want to build on and develop those relationships.
The Government believes that in the long run the UK production ecosystem will benefit from a more sustainable Channel 4. A change of ownership that improves Channel 4’s access to capital could increase spending on production.
Asked by: Jesse Norman (Conservative - Hereford and South Herefordshire)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what estimate her Department has made of the projected cash return from the privatisation of Channel 4; and on what assumptions that projection has been made.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
Channel 4 has a strong reputation for innovative and diverse content, a proactive strategy to be a digital first provider, and huge popularity with a range of audiences, including valuable younger audiences. The Government expects this will appeal to a broad range of different purchasers.
As with the sale of any government asset, any sale of Channel 4 will involve a careful assessment process to ensure value for money for the taxpayer.
Asked by: Jesse Norman (Conservative - Hereford and South Herefordshire)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what her Department's valuation is of Channel 4 as of 9 June 2022; and on what assumptions that valuation has been made.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
Channel 4 has a strong reputation for innovative and diverse content, a proactive strategy to be a digital first provider, and huge popularity with a range of audiences, including valuable younger audiences. The Government expects this will appeal to a broad range of different purchasers.
As with the sale of any government asset, any sale of Channel 4 will involve a careful assessment process to ensure value for money for the taxpayer.
Asked by: Jesse Norman (Conservative - Hereford and South Herefordshire)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, in what way her Department intends to treat the revenue from any sale of Channel 4.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
The Government will look to use some of the proceeds from the sale of Channel 4 to deliver a new creative dividend for the independent production sector.
Asked by: Jesse Norman (Conservative - Hereford and South Herefordshire)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what estimate her Department has made of the projected (a) economic and (b) social returns from the privatisation of Channel 4; and on what assumptions those projections have been made.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
The Government consulted extensively on the future of Channel 4, and the views and evidence gathered from a wide range of stakeholders has informed the Government’s assessment of any potential impact of a change of ownership. The Government published its sale impact analysis on 28 April.