View all newsletters
Sign up for our free email newsletters

Fighting for quality news media in the digital age.

  1. Archive content
April 7, 2005updated 22 Nov 2022 2:58pm

Channel 4 news ‘needs slice of BBC licence fee’

By Press Gazette

By David Rose

Channel 4's output of news could be cut back in a few years time if the broadcaster is not allowed a share of the BBC's licence fee.

Chairman Luke Johnson sounded the alert in Parliament after Lord Burns – media secretary Tessa Jowell's outgoing adviser on the BBC – said there was a case for ITV as well as Channel 4 to be allowed a share of a "larger pot" from the licence fee.

"They are going to find it more and more difficult to produce public service programmes," Lord Burns told a crossparty committee of peers reviewing the BBC's Charter.

Johnson admitted to peers: "If in five years time our audience share has shrunk, and production costs have risen materially, we will be up against it."

He said news, current affairs and original drama all lost money.

Channel 4's news output costs the company £20m a year, Johnson said.

Content from our partners
MHP Group's 30 To Watch awards for young journalists open for entries
How PA Media is helping newspapers make the digital transition
Publishing on the open web is broken, how generative AI could help fix it

"If we didn't have a news programme in that slot we would put out programmes which would cost substantially less."

While the Government has guaranteed the BBC will continue to receive the licence fee for the next 10 years, pressure for a re-examination then is expected to increase with the switch to digital TV scheduled for 2012.

Johnson said the BBC was looking forward to 10 years of certainty. "We live in a world where the second half of this year will see a tougher advertising market."

He said the £100m-£200m value of the indirect subsidy Channel 4 received from having free access to the spectrum was also shrinking.

Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog

Select and enter your email address Weekly insight into the big strategic issues affecting the future of the news industry. Essential reading for media leaders every Thursday. Your morning brew of news about the world of news from Press Gazette and elsewhere in the media. Sent at around 10am UK time. Our weekly does of strategic insight about the future of news media aimed at US readers. A fortnightly update from the front-line of news and advertising. Aimed at marketers and those involved in the advertising industry.
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network