Ofcom PSB review: 4Subsidy

Unsurprisingly, Channel 4 CEO Andy Duncan welcomes Ofcom’s rejection of a BBC-only model of public service broadcasting.  Good CEO’s chase money.  In this case, Duncan is chasing a prize equal to a multi-year smash hit television programme:  State subsidy.   Moral hazard alert!

I suppose all eyes will next turn to Andy Burnham.  He doesn’t look like the sort of politician to engineer radical change, so it will be interesting to see the DCMS reaction to Ofcom’s proposals.  I would imagine there is already some level of DCMS buy-in for Ofcom’s proposals; otherwise I cannot imagine Ofcom bothering to pitch something that is a non-starter.  Being independent of government is one thing; being aware of the politics of regulation is another.

I also wonder whether Ofcom will wise up to the notion that additional public money for PSB is probably a bridge too far.  Ofcom’s ‘willingness to pay’ research was pretty weak, and there is no suggestion that the government has a ‘willingness to tax’ for PSB promotion in these hard economic times.  I would really be stunned if Ofcom were able to convince the government that any new appropriation of public funds is warranted.  So, the BBC licence fee remains a target.

My idea to have Northern Rock loan Channel 4 the necessary funds is also still an option!