Channel 4 privatisation may have indirect impact on S4C

THE UK Government’s decision to privatise Channel 4 has no direct bearing on the future of Welsh language broadcaster S4C, although there could be an indirect impact.

While Channel 4 is owned by the UK Government, S4C is owned by the S4C Authority, an independent public body appointed by the UK Government’s Secretary of State for Digital, Culture, Media and Sport to oversee the management of the TV channel S4C. It would not, therefore, be possible to privatise it.

No private sector investor is likely to be interested in putting money into S4C because the opportunity to make profits from advertising revenue or the sale of programmes overseas simply isn’t available.

S4C is, in the purest sense, a public service broadcaster whose reason for existing is to provide a TV channel for Welsh speakers as part of a mission to keep the Welsh language alive and help to broaden its appeal.

Nevertheless, the future funding of S4C remains precarious, because the great majority of its revenue comes from the TV licence fee, the bulk of which goes to the BBC.

Meanwhile Welsh TV production companies are worried by the plans to privatise Channel 4. Dyfrig Davies, chair of TAC, the Welsh producers’ trade body, said: “Channel 4 has enabled the development of a thriving independent production sector and analysis shows that in 2019 Channel 4 contributed £20m to GVA [Gross Value Added – a variation of GDP] in Wales and supported 200 jobs.

“Channel 4’s initial investment in Welsh production companies in north and south Wales has enabled them to grow and develop their businesses. This could be lost if it leaves public ownership and refocuses on redistributing profits to private owners and shareholders.”