Pact Statement on Ofcom Decision on Channel 4's New 10-Year Broadcast Licence

Pact is very disappointed with Ofcom’s final statement on Channel 4’s licence renewal. Its decision to retain its proposals to require Channel 4 to commit to at least 35% of hours and expenditure for programmes made out of London and its decision to not introduce Channel 4’s 12% nations quota from 2027 along with separate quotas for Scotland, Wales and Northern Ireland is a missed opportunity.

While we were initially disappointed that Ofcom decided against a 16% quota, we were willing to accept the 12% quota so long as separate quotas for the nations were put in place and the implementation date was brought forward to 2027. This would have provided the production sector in the nations and regions with future certainty around levels of commissioning and spend and helped to stimulate growth over the next ten-year licence period.

Lisa Nandy, Secretary of State for Culture, Media and Sport, recently spoke at the Royal Television Society Conference where she highlighted the importance of regional television and called for the sector to create more opportunities outside of London. Separate quotas for the nations, and enshrining Channel 4’s 50% voluntary Out of London commitment, would have helped to create more opportunities for indies in the nations and regions.

With the sector currently feeling the effects of the wider sector downturn and market changes, Pact is concerned that Ofcom’s decision will further damage the cultural diversity of the sector leading to an overall weaker TV production sector.

Pact Chief Executive, John McVay, 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.”