Michael Grade summoned a small audience of opinion formers to his
stainless steel fortress this week to view a corporate video saying how
wonderful his channel is for making education and news programmes -
while finding new comedy talent. There were clips of Rory Bremner, but
not a whiff of Brookside or American imports, let alone a tacky youth
programme.
The reason? The forthcoming Budget is making Channel 4 nervous. The
great worry is that the Chancellor’s revenue predictions might include a
tasty billion or so of gains from the future privatisation of the
network, to be realised after the election. And, although Labour opposes
a sell-off, once such a commitment is written into financial predictions
it takes on a life of its own. The broadcasters, as Grade said, ‘are
always in play’, because their fate so clearly rests on political
decisions, whether it’s fixing the level of the BBC licence fee or
BSkyB’s freedom to enjoy a monopoly over subscription income.
Yet Channel 4 has clumsily assisted in this potential calamity. Its
noisy two-year crusade against the funding formula (it will hand over
pounds 90 million to ITV this year, in return for a financial guarantee)
has created, rightly, such a smell of money that the Treasury
bloodhounds have gathered at its door. Even if it escapes this time its
wealth will be targeted, perhaps by a broadcasting levy. In fairness it
is the victim of a poorly devised safety net - drawn up in such
recessionary conditions it failed to anticipate Channel 4’s success, by
placing an upper limit on the payments it makes.
Channel 4’s best short-term defence must lie in the embarrassment
factor. Privatisation would stir up such a cultural hornet’s nest in an
election year that it would not be worth the trouble. Its chairman, Sir
Michael Bishop, a firm Conservative supporter and fan of privatisation
almost everywhere else, is vehemently opposed to such a step (the
argument runs that gas is gas, whoever delivers it, but programme-
making is different). The Independent Television Commission has also
robustly attacked the proposition, although it is a weakened force,
awaiting the arrival of a new chairman.
What is interesting for the PR industry is the way the broadcasters,
each in their own way are currently currying favour with the public,
promoting themselves as servants of the audience. The BBC has been most
thorough, with its 250 promises to viewers, more explicit producer
guidelines, and a role as custodian of our heritage. ITV is doing its PR
on-screen, through an aggressive brand-building campaign.
Channel 4’s effort is low-key and perilously late. Grade wishes he had
started championing the programmes from its special remit to serve
minorities two years ago, instead of banging on about money. But he
didn’t. I’m left with the feeling that all is not quite right at Channel
4.
