I posted this thread on Twitter at lunchtime today:
Suppose the viewers of Channel 4 really did not want to watch a Murdoch / Amazon / Netflix / Apple owned channel in the future and decided to do something about it. Suppose they decided to buy it instead…. a thread…..
Channel 4 has been put up for sale by Nadine Dorries. The idea horrifies many. No one but a few dogmatists on the far-right of politics can see a gain from this. They, though, want another platform for their message. Suppose the viewers decided to stop them. Could they?
Clearly they could. At a maximum 7 million people watch Channel 4 (the Bake Off). Channel 4 news manages an average of 750,000. Let's suppose the latter number really care about the future of the Channel.
£1 billion split between 750,000 people is £1,333 each. Now suppose a new company was created by those wanting to preserve the ethos of the channel and people were invited to subscribe. The minimum sub would be £25. The maximum might be £100,000 to prevent any risk of influence.
The structure would make this share capital, but on which interest might be paid at up to 3% a year, but only if profit was made.
Would it be possible that such a company could find sufficient subscribers to buy the channel? I suspect that at least 100,000 people might be required. Many more than that have already signed petitions opposing privatisation.
There is £8.4 trillion of financial wealth in the UK. The owners of some of that must want to put it to social use to hold back the tide of neoliberalism that underpins the idea that all news media must be owned by large corporations or individuals with a right-wing message.
The idea would require some guarantors who would risk funding the bid. The subscribers would not be asked for their money until there was a real chance of winning. But surely those guarantors might also be found?
In that case, what about a public bid for Channel 4? It could be done. So why not try it? And would the government really ignore such a movement if it could show mass popular support?
I am now in discussion with interested parties.....
But I make no promises.
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Bear in mind it’s not just one channel any more, there’s E4, 47, More4 as well. Don’t know what the figures are for those, low I should imagine.
The impetus for setting it up in the first place was the realisation that there was the bandwidth in the spectrum for a fourth analogue channel. But digitisation has changed all that.
It has no content IP, basically it just has a brand, and the Freeview/Freesat slots (which it pays for). C4 news is produced by ITN. £1bn will be pushing it imo.
With fibre to the home becoming near-universal, freeview/freesat will become less and less important (the “media inversion” we talked about so much in the 90s is now actually a thing).
I think there is a case for a news/media organisation owned by its readers/viewers/listeners and run by its journalists…
So what?
A lot of us still value it
More than I do the products of most quoted companies
My first thought in hearing a valuation of £1 billion was – really? what assets does it own? Not the programmes, probably not much real estate, so what else? So is it really just the brand? Is the name “Channel 4” worth a billion pounds? Does it actually own any other assets?
Here is the last annual report, for the year to 31 December 2020. https://annualreport.channel4.com/assets/pdf/Financial_report_and_statements_Channel4_AR20_ACC.pdf
Surplus of £69m on revenues of £934m (mostly linear and digital advertising), with costs of £825m (mostly cost of content). Retained earnings of £400m – about £100m of property, £240m of programme right (mostly content in the course of production or completed but not yet broadcast, not ongoing rights to revenue), chunks of cash and receivables matched by payables and a pensions liability.
It is essentially a mechanism to turn advertising revenues into independent production. So who would buy that and why?
An accountant would say an income stream of £69 million pa was easily worth £1 billion
But accountants do not understand value or values
Reply below (sorry, clicked in the wrong place!)
Basically then, we will be buying something we already own. Most likely they’ll sell to one of their mates at a knock down price to ensure it’s a pro Tory propaganda station.
I fear that is likely, but maybe showing an alternative is possible would help
One day we might have to but the NHS….
Well done, Richard! Public Broadcasting in the US manages to fundraise enough to keep going year in, year out. Your model might well attract enough funding here to save C4 from Tory predators. At any rate, if you go ahead, count me in.
This would have a long way to go…
Marvelous idea and thanks for proposing such an idea and trying to follow through, Richard. You can count me in too if you make progress.
I suspect this get no further than being an idea…..but who knows
Many privatisations have involved flotations, with the great public offered discount shares ( “Don’t tell Sid” comes to memory). It is telling that this is not being considered, with the preferred route for C4 to end up in the arms of some corporate behemoth, so that nasty programming ceases. Of course, I always have found it wonderful that governments could scam the public by selling them something they already owned.
It is not an annuity producing a regular income stream of £69m pa. They’ve accumulated a surplus of £400m over 40 years. The year before was a deficit of £25m on slightly larger revenues, because costs (principally programme costs) were even larger.
Excellent piece. Thanks RM.
We already have some crowdfunding of media channels and commentators: Byline Times and Double Down News, Maximillien Robespiere, Phil Moorehouse, ZOE, and not least yourself et al……..This independent media works well for democratic reportage, but is not national.
However, the above outlets make it clear that it is currently possible to form alternative free news outlets that progressives sorely want.
Could it be possible that we are at the moment where crowdfunding needs to become a major progressive force for democracy? The Tory oligarchs will never oblige. A crowdfunded media channel would be a hurtful (sic) rejection of Oligarchy news by the liberal brits.
Back to the spirit of Rochdale Co- ops perhaps, a kind of bottom-up democracy.
Lord knows, there are so many groups unrepresented in UK media or party, for instance – the pro Europeans, or those asking for social justice, greens, or indeed just those that merely want a forward looking country.
Simon Wren Lewis remarked that ‘the (English) MSM may be regarded as the media arm of the Conservative party’ ( my european friends call it ” The British Pravda Group”). ‘Nuff said.
Could not Channel 4 be the opportunity to grab a media platform and the focus for Progressives in the UK towards a media future?
Or, if that fails, to then to work towards a crowdfunded a peoples media platform; encompassing all those that we now have, into a Progressive media channel where they, and many unrepresented others, might all appear? It would be a focus, that we dont currently have.
I’m not suggesting the end of You tube, Twitter etc., just a national channel where progressives might gravitate to have a say.
If you ever get the chance, could you have a chat with Peter Jukes and/or the rest, Richard just to get the ball rolling?
Your energy might be the difference.
Dont bother with Labour, they wont like it errr…MMt, freedom of EU movement, union rights, anti war,…… . and they already have GB News for flagshagging ………well catered for.
Regards
Paul
Regard
Paul & chums
Peter and I should do more together…
This excites me. I would put £1000 in.
Count me in!
I will try to spread the word as far as I can.
Wait until something happens!
Very interesting idea. I’d seriously consider it.
Craig
Fantastic idea.. I will add £50.. where is the link??
None as yet….this is no more than an idea right now
You can count me in when the real crowdfund starts, Richard!
The bottom line is that no such bid would be accepted. The government can decide however it likes what criteria must be met. Since the whole point is to stifle scrutiny and dissent, it would never allow control to be handed over to its enemies. Yet this should not deter us. If the movement gained momentum, the message would be sent that people have agency. It might generate excitement in the idea of ground up control. It would put the government in the position of having to “thwart the will of the people”. Ultimately, the bid would fail. But the government would be exposed as the authoritarian monsters they are. Having seen the abysmal treatment metered out to Carol Cadwalledr, we can guess how such a move would be resisted and how dirty the tactics would be. That said, I’m up for it.
A great idea. Anyone who thinks that democracy comes for free is an idiot. Sadly anything that comes for free or thinks it comes for free is not respected. When you have to pay for something you take care of it.
Crowdfunding to buy the channel is a great way to create something of real value that people will stay interested in permanently. Don’t under estimate the potential for interest from abroad. Already there are moves to limit the amount of UK programmes bought by EU countries post Brexit. The potential for interest from abroad is huge. The type of programmes could increase interest from EU countries which means advertising revenues could increase enormously. Music comes to mind immediately, just don’t make the mistake of dubbing, sub-titles only.
Think of crowdfunding at least Europe wide – a channel without political or religious constrictions with real dancing on the edge programmes – Channel 4 Europe. Many people across Europe are sick and tired of the old nationalistic mentality. Look at the success of Al-jazeera and the reasons why. Use facebook/twitter et al to spread the word – don’t think small. Where in the world do you have any TV that creates programmes that excite real interest without national/political/religious constraints. I can think of only one – Al-Jazeera but it doesn’t do music or the arts. Why do so many, especially the young no longer have any interest in TV – same old, same old.
If it is possible to crowdfund the buy look beyond the island and look beyond even the boundaries of Channel 4. Look at the programmes that were exciting to watch in the 60s’ – the audiences could be huge and the revenues to match – dare to win.
Count me in!
Given that this privatisation is being done by Dorries as an act of spite and revenge for C4 exposing her beloved leader as the lying charlatan he is, if this sell off can’t be prevented by public pressure on Tory MP’s (assuming there any left at all with a spark of integrity and decency) I’d back this too.
Because…..”Simon Wren Lewis remarked that ‘the (English) MSM may be regarded as the media arm of the Conservative party’ ( my european friends call it ” The British Pravda Group”).”
Too true. I’m in the fortunate position of being able to afford to put a fairly substabtial sum towards this. Count me in if it can be done!
Discussion got delayed today…..
Someone made the comment that free to view / sat.com. wasn’t needed anymore – that is an island mentality at work. free to view/sat.com immediately opens a huge market, initially in Europe (don’t think small) imagine the incentive for companies that operate internationally. For Channel 4 (or whatever name is chosen) to be really profitable and to survive it has to be profitable then ad revenue is critical. Here, investors of the kind that will crowd fund such an adventure will quite rightly demand a real control with integrity about what ads will be acceptable.
Programmes can be made in different countries, language not being a problem with sub-titles so the channel can truly be pan European. Died in the wool nationalists will never be a target audience and the better for it. Having lived in 3 different European countries (I now live in Franc e) and with friends across Europe we all want to know what is happening in other countries. A classic example was the Gilet Jaune movement. So much disinformation spouted by TV1 – the mouthpiece of the French government. Neither in France or across Europe did you hear about the agent provocateurs, police out of uniform, the attempt to not not show the brutality of the Gendarmerie against elderly peac eful demonstrators. I am able to view Sky/BBC/RTE etc. and I saw how there was a concerted effort by TV across Europe not to show the reality of what a powerful movement this was with no leaders – this is what really frightened the French government – democracy in action. What a wonderful opportunity for such a channel to show the news ‘as it really is’.
Imagine people like Richard presenting TV seminars on ‘how to not get screwed financially with savings/investments/insurance/mortgages and pensions. As a retired builder having worked in 4 different European countries, programmes on what constitutes good building, on not buying leasehold properties. where to buy and where not to buy ergo teaching the general public on how to be smart. The uproar that will come from the rip-off merchants – a must view channel, a profitable channel and it must be profitable to succeed.
Yep, count me in. Cracking idea!
This is really exciting. The bottom-up issues , crowd funding, and looking outwards are worth pursuing. I’m in.
A very interesting idea. Would be interested in investing a modest sum, but I think it will need many more than 100,000 to subscribe.
I think this is a really good idea and quite achievable with the right mix of investors