Channel 4 said it could sell its London headquarters for £ 100m and almost double the number of employees working outside the capital as part of plans to become “north-based”, hoping to offer an attractive alternative to privatization. government boost.
Describing his proposals as a “rising TV operator”, he said he intended to increase the cost of TV shows commissioned by production companies outside London by hundreds of millions of pounds a year by 2030, a move he believes will create at least 3,000 jobs.
The broadcaster, which is state-owned but funded by the retailer, said the changes would mean that most of its 800 employees will be based, including its “national headquarters” in Leeds and centers such as Glasgow. Bristol, Manchester and Birmingham, with the number of employees working outside London, will almost double by 600 by 2025.
“At the same time, we will streamline our presence in London by creating a new base in London that reflects our new ways of working,” the broadcaster said in a plan called 4: The Next Episode, which was rejected by the government.
“As we embrace hybrid work and reorient our focus from London to nations and regions – a reorientation inherent in our public ownership – Channel 4 may require a London base of varying scale.
The government was expecting an unforeseen profit of £ 100 million from a potential sale of Channel 4’s headquarters in Victoria, central London, the last time it tried to privatize the broadcaster, but eventually gave up.
Channel 4’s plan also includes setting up a joint venture with an outside investor as a majority shareholder to spend £ 200 million a year on new content and ultimately increase its total program budget from £ 700 million to £ 1 billion a year by 2030.
Other plans include launching its All4 streaming service worldwide, targeting younger demographics, which he says could generate another £ 100 million a year.
Last week, the Ministry of Digital, Culture, Media and Sport (DCMS) launched the formal privatization process for Channel 4 in a broad white paper that rocked the British media industry, despite widespread opposition in the sector and Labor and Conservative MPs. that it needs to be in private hands to be able to compete financially with global streaming giants like Netflix.
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The government consultation received 56,000 responses, with 96% opposing privatization.
“Channel 4 is in the healthiest health it has ever been,” said Alex Mahan, the television’s chief executive. “This is an attractive, realistic and sustainable solution, while remaining in the hands of the British public.
“There is a lot of evidence [that privatisation] it is not what society wants, not what industry wants. I’m sure DCMS doesn’t want to hurt the creative industries. But this White Paper, as set out at the moment, we must be very careful not to create unintended negative consequences for the industry. There are many stages that need to go through in the discussion of ownership. “
Channel 4 research estimates that the government’s plans to remove its unique publisher / distributor model, which returns program rights to creators, allowing them to use them commercially after broadcast, could cost 4,000 jobs and hundreds of millions a year. for production companies.
Urban circles speculate that Mahon – who has extensive experience in the private sector, including spending nearly a decade managing Shine’s Elizabeth Murdoch, a show producer, including MasterChef, which was sold to her father Rupert’s News Corporation in 2011. – can be included in the form of redemption of the management of the television operator.
However, on Thursday, Mahon dismissed any potential involvement, saying the future of Channel 4 would depend on the government and the UK Government Investments (UKGI), which control state ownership of the broadcaster.
“I need to be very clear about providing the best for Channel 4,” she said. “And that’s why I have to run the business, to be independent of such things, to optimize the powers, to do that in the next few years. What will be decided or not decided through the sales process will not depend on me. It will depend on the UKGI and how the government will do it. That’s why I remain completely independent of it. “
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