Channel 4 boss warns of potential ‘irreversible’ damage amid privatisation discussions

TV boss hails channel’s ‘soft power’ in the global TV landscape, a day after reports EU is preparing to cut down on proportion of British TV and film shown around Europe

The boss of Channel 4 has cautioned against any “irreversible” changes to the broadcaster that could “damage some of those things that we do for the sector”.

Alex Mahon, who will appear with chairman Charles Gurassa before MPs today (Tuesday 22 June) to face questions about the potential privatisation of the network, warned of the effects this could have in its annual report.

The report showed Channel 4 – the broadcaster behind hits including The Great British Bake Off, It’s a Sin and Come Dine with Me – delivered a record financial surplus of £74m at the end of 2020, along with significant digital growth.

The possibility of a sale of the government-owned network has been explored on several occasions over the years, but recent reports suggest it could actually happen by as soon as next year.

Mahon said the network was in a “really strong position” financially and that any examination of it by the government should be about “making Channel 4 stronger”.

“We’re here to deliver certain aspects of industrial policy, in terms of how we spend money to help grow the creative sector, in terms of how we speak up for the under-represented, in terms of how we attract young people, in terms of how we are now looking at how we build those creative clusters outside of London,” she said.

“So you’ve got to think about how do you make those things stronger and stronger, and then balance that with what the correct or the right or the optimal ownership structure is.

“And I would be saying we’ve always got to be careful of doing anything that might be irreversible, that could possibly damage some of those things that we do for the sector, and that we do for the UK.”

She added: “What I can say is at the moment, we don’t seek to make a profit. So all of that advertising money, all the billions we take back in, that is ploughed back in to the creative sector.

“We don’t make a profit, but the profit is made by many, many small and medium businesses across the UK. And we’re helping them to deliver profits and deliver growth and to flourish. Those are our priorities. If we were under a different structure - and I’ve run commercial businesses - you would normally have different priorities.”

A day after reports emerged that the EU was considering cutting down the proportion of British TV and film shown around Europe, Mahon referred to the “soft power” of having shows produced in Britain that are then sent “across the world”.

“We are the only publisher-broadcaster like that. So that’s a very, very distinctive part of our landscape, and you can’t rely on Netflix or Amazon or others to do that, and we are doing that in order to grow their creative economy, we’re not doing that to consolidate or to cross-sell you other stuff,” she said.

Producers are able to retain the rights to shows commissioned by Channel 4 and capitalise on them globally, which has created successes such as Come Dine With Me and Undercover Boss.

Mahon also pointed out that Channel 4 has significant success in attracting younger viewers, compared to other networks, and has also tasked itself in championing diversity.

“Then I think you look at young people... other people can’t attract them,” Mahon continued. “You know, they’re not easy to find, they’re elusive for some, but not for us. And in this age of misinformation and disinformation and conspiracy theories, anti-vaxxers and 5G, that’s more important than ever, you know, and I think we need to be very careful not to lose that from the landscape.”

Additional reporting by Press Association