The Government is considering some form of financial assistance for Channel 4, following a report for Ofcom suggesting that the broadcaster is likely to be loss-making after 2010. The report in April, by consultant LEK, said while current cash reserves would sustain Channel 4 until the completion of digital switchover in 2012, it would increasingly be forced to decide between investments generating commercial returns and those that maintain its status as a public service broadcaster.
And in a written reply to Tory MP Mark Hoban, Woodward said the Government recognised that "Channel 4 is likely to face financial pressures in the future that may have implications for its ability to deliver fully its public service remit".
"We therefore welcome Ofcom's current review of Channel 4's financial prospects and will take a close interest in the outcome. In the meantime, we are considering the possible case for short term forms of assistance to Channel 4," said Woodward.
Lovelace Consulting | 12.06.2007