Channel 4 is a remarkable British institution which plays an important role in our society. It stimulates debate, challenges the orthodox, and addresses audiences who might otherwise be neglected. Channel 4 pushes the boundaries: sometimes this works, sometimes not: but it remains a powerful force of enlightenment and civilization. It delivers an astonishing array of programming, with far more individual voices on-air than any other channel. It provides a crucial outlet for the hundreds of independent television producers who make Britain's creative economy so fertile. And it distributes this universe of talent without any cash subsidy from the taxpayer.
But this magic formula, which has worked so well for 25 years, is starting to fade. The commercial television industry is under more competitive pressure than ever before. Last year we were the only terrestrial broadcaster to maintain our audience share, but despite this our financial surplus fell. In 2007 we will be unable to increase programme budgets in line with industry cost inflation, so inevitably our output will suffer somewhat. Digital switchover will see us lose our gifted analogue spectrum and much of our competitive advantage. In coming years we shall be forced to steadily reduce our output of public service broadcasting, and focus more and more of our schedule on strictly commercial shows, unless we receive help in kind. The one off, the quirky, the eccentric, the intellectual - all this material will disappear if nothing is done by Ofcom and government.
The Board of Channel 4 is determined that such a vital part of modern Britain's culture should not be neglected. I believe that Channel 4 should be given material support to help it retain its role as the only genuine rival to the BBC of serious television. The Board believes the option of doing nothing offers no real future, and would be a tragic waste of an important organisation.
Years of discussion resulted in a £3 billion annual licence fee for the BBC. Now Channel 4 needs some modest attention from policy makers, and perhaps 3% of that sum as support. Ofcom are currently undertaking a review of our future and we sincerely hope they advise government of the need for action if Channel 4 is to be preserved for future generations.
Since I joined Channel 4, almost the entire Board has changed and our corporate governance has been transformed. I believe the Corporation benefits from a strong executive team and an excellent group of committed non-executives, including a new, high-profile Deputy Chairman, Lord Puttnam. We are fortunate to enjoy their services, and also the diligence of our full-time staff, and the thousands of independent contributors to the programmes we commission.
With their various contributions, Channel 4 ends up making some of the very best television anywhere. And we are now expanding our unique offering into digital radio and ever more online, to be certain we keep in touch with consumers. But to maintain quality and scale, we need our stakeholders to back us.
Read the Chief Executive's Statement