PSB Report: C4 'should not' be privatised

Ofcom has said today that it will not support calls for Channel 4 to be privatised.

Although it recognises that the broadcaster is facing increasing "pressure to substitute more commercial programmes for its current PSB programming to earn sufficient revenues," Ofcom believes that the station should "remain primarily not-for-profit."

In its phase 2 report on PSB, published today, the regulator explained: "Not-for-profit status has provided a basis for Channel 4's unique contribution to PSB over the last 20 years and there is no reason to suppose that the same approach is unsustainable in future, particularly if new means of commercial cross-subsidy can be found."

It suggests a number of measures for protecting C4's PSB remit but simultaneously keeping afloat. Included in those are an encouragement to develop "a suite of free-to-air channels," further operational efficiencies and market-based initiatives such as increased cross-subsidies from its commercial ventures, and the formation of "alliances, joint ventures and partnerships with other organisations."

The report added: "We expect Channel 4 to use its considerable financial resources to ensure it maintains a sharper focus on its public purposes, as set out in the Communications Act."

Should the PSB protective measures fail, the regulator suggests that one other answer would be to transfer "income-generating assets" from the BBC to C4.