From
Digital Spy
Ofcom: C4 to be absorbed into new entity
Ofcom has recommended that Channel 4 become part of a larger entity better able to compete with the BBC in the provision of key public service broadcasting aims.
The regulator, which published its blueprint for the future of Britain's public service broadcasting system today, fully rejected funding Channel 4 or any other public service broadcaster by "top slicing" the TV licence fee but said that a "financially robust alternative" to the BBC needed to be created "with Channel 4 at its heart".
Outlining four main aims, Ofcom said that the BBC should remain "the heart of the public service system" with funding adequate for the universal delivery of its programmes and services in the digital age. It added, however, that "a second institution with clear public purpose goals and a sustainable economic model" was needed to compete with the BBC and "help to ensure wide availability of public service content", and that the best solution would be for Channel 4 to embark on "a structural relationship with another organisation", such as BBC Worldwide, and for government to give the new entity "a new remit and a new governance and accountability framework".
Ofcom said that ITV and Five should be "freed up" to become "strong sustainable commercial networks" capable of delivering "key aspects of public service content... based on their mass reach and delivery of popular entertaining programmes". The regulator confirmed it would proceed with its September plans to permit Channel 3 licencees to cut the number of hours of non-news regional programming, daytime regional news programmes and the number of regional newsgathering centres, and added that from 2014, Channel 3 should become a single commercial network "with modest but important regulatory obligations delivering a sustainable public service commitment to national and international news and origination" and with the 6am-9:25am franchise, currently held by GMTV, reintegrated into ITV.
For regional news as a whole, Ofcom said that "independently funded news consortia" could be developed "to ensure the supply of a choice of high quality news alongside the BBC in the devolved nations and English regions", especially in light of plans for ITV to produce its regional news output in partnership with the BBC.