Disappointment at Welsh TV production quota for Channel 4

Martin Shipton

Independent TV companies say they are very disappointed that Ofcom has failed to make Channel 4 significantly increase the proportion of its programmes made in Wales.

The regulator has published its decisions on the terms of a new broadcast licence for the channel. It says it is “supporting the channel’s digital growth” and “securing public service broadcasting on it for a further 10 years.”

But production companies had argued for a bigger increase in the proportion of programmes made in Wales and outside London.

Valued

A statement issued by Ofcom said: “Our audience research shows that Channel 4 remains a valued part of the UK’s broadcasting landscape. It also continues to deliver content promoting new and diverse voices and perspectives, and has a crucial role in supporting the creative economy outside London.

“Since Channel 4’s licence was last renewed in 2014, the broadcasting sector has changed significantly. Viewing of traditional broadcast TV has seen a long-term and substantial decline, while younger people – who traditionally form Channel 4’s core audience – are turning to online video streaming services.

“Channel 4 is also facing financial challenges – given its particular exposure to fluctuations in the advertising market – as well as a declining audience share and weakening brand recognition amongst younger audiences.

“In response to these challenges, Channel 4 has set out a strategy to transform itself into a “digital-first public service streamer” by 2030.

“The new licence is designed to support Channel 4’s digital content and distribution strategy, while safeguarding its investment in distinctive UK content and protecting the interests of viewers who rely on traditional, scheduled broadcast television.”

‘Strong and ongoing presence’

The statement goes on to say that the new licence “paves the way for a strong and ongoing presence for Channel 4 in each of the nations, and the commissioning of a diverse range of programmes, harnessing local creative talent and skills.

“Following an additional consultation, we are today confirming our decision to increase, by a third, the annual requirements on Channel 4 for production spend and programme hours made in the UK outside of England – from 9% to 12%.

“The licence demands that Channel 4 must achieve these increased quotas from 2030, to allow for the delivery of quality programming in a sustainable way.

“During the relicensing process, we heard concerns shared by industry stakeholders about Channel 4’s delivery in the nations to date and commitment to this agenda. So we are also clear that the broadcaster must, in future, be much more open and transparent about its approach to commissioning and its impact in each individual nation.

“In line with new guidance to be issued by Ofcom, Channel 4 should regularly publish data and information setting out how its approach to commissioning outside of England supports and stimulates the TV production sector in the nations; its strategy for commissioning in each individual nation over the next year and how it delivered its strategy for the previous year; and  its plans to engage with stakeholders and audiences in the nations in the next year and how it engaged with them over the previous year, including how it enables access to commissioners.

“We will closely monitor Channel 4’s progress towards meeting the new quota levels, as well as scrutinising its broader performance and delivery against its strategy, through our annual Statement of Media Content Policy report.”

‘Best outcome’

Cristina Nicolotti Squires, Ofcom’s Group Director, Broadcasting and Media, said: “This new licence is the best outcome for audiences and for Channel 4.

“It strikes the right balance between giving Channel 4 the flexibility to support its digital transformation, while safeguarding highly-valued distinctive programming on its traditional channel for the long term.

“The new licence also substantially increases Channel 4’s requirement for production in Northern Ireland, Scotland and Wales. Ofcom will be closely monitoring its performance in this area and holding it to account.”

Alex Mahon, Chief Executive, Channel 4 said: “We welcome Ofcom’s renewal of Channel 4’s ten-year licence and support for our strategy to become the first public service streamer. The new licence provides clarity for the next decade as we deliver our unique public service remit – investing in distinctive British content and trusted news for audiences and supporting the growth of the creative economy across the UK. Ofcom’s recommendations support our drive for even greater distinctiveness, allowing us to build on our position as the only major commercial broadcaster to grow overall viewing minutes this year and continue our industry-leading digital transformation.

“We also welcome Ofcom’s decision to increase Channel 4’s nations quotas by one-third – from 9% to 12% of our main channel content spend and hours – in Northern Ireland, Scotland and Wales by 2030. We believe this strikes the right balance between the commercial flexibility we need as a business and fulfilling our goal to support sustainable production growth across the nations. Channel 4 will strive to reach the 12% level by 2028 – two years ahead of target. We look forward to continuing to work closely with Ofcom to strengthen UK public service media and deliver for British audiences in the years ahead.”

Unimpressed

But TAC, the trade association for TV production companies in Wales,was unimpressed by the announcement. The bodys Chair Dyfrig Davies said: “This is a really disappointing outcome for producers around the UK and particularly in the nations. Wales is a production centre with around 50 active companies and it has much more to offer to a broadcaster such as Channel 4.

“Ofcom’s proposals show a remarkable lack of ambition, especially when you consider that Channel 4’s voluntary out-of-London quota is 50% and yet Ofcom has retained the obligation at just 35%.

“Also the small rise in nations production quotas has a very long timescale and overall will make little difference. We can only hope that Channel 4 itself shows more leadership on this going forward than Ofcom has in this instance and voluntarily raise its commitments further to the nations, as it has done for out-of-London commissioning in general.”

John McVay, CEO of the UK-wide trade association Pact, said: “Ofcom’s decision to retain Channel 4’s Out of London quota at 35% and its decision not to introduce separate nations quotas, along with not bringing forward the implementation date for Channel 4’s nations quota is short sighted. Pact submitted substantial evidence to Ofcom refuting the assertions made about the sector in the nations and regions, and we’re concerned that Ofcom’s decision will only lead to a further decline of the sector.”