BBC and C4 should ‘move closer’, says minister – Daily Business

The BBC and Channel 4 should forge closer ties to help combat the challenge from streaming services such as YouTube and Netflix, according to Ian Murray, the creative industries minister.

Mr Murray, who was previously Secretary of State for Scotland, has called for “deeper and more strategic partnerships” to help stem the flow of audiences away from traditional channels and ease financial burdens.

His comments come amid movement within the broadcast sector, including a proposed merger of Comcast’s Sky with ITV which would put further pressure on the BBC and Channel 4 to respond.

STV might also be brought into any further consolidation. Its future may rely more on supplying commissioned programmes which it already supplies to other channels, including the BBC.

An Ofcom report last month found that YouTube has become the second most watched video service in the UK, behind the BBC and ahead of ITV.

Mr Murray’s comments stop short of advising on a full-blown merger of the BBC and Channel 4, though this might be the outcome of closer co-operation. He has warned that a failure to take some action would lead to inevitable cuts.

The Competition and Markets Authority (CMA) is likely to be more favourable towards proposed mergers in view of the changing landscape of television since previous mega deals were rejected.

The Times reports that Mr Murray has written to Dame Melanie Dawes, the Ofcom chief executive, and Sarah Cardell, the chief executive of the CMA, stating that “the television market is transforming.”

He adds: “Our [public service] providers, alongside other broadcasters, are having to contend with rapid technological advances and changing audience viewing habits in an increasingly competitive and fragmented market…

“…we believe there could be significant benefits to public service media providers pursuing deeper and more strategic partnerships.”

A DCMS spokesperson said: “We support deeper partnerships involving public service media providers that could help them address the challenges of an increasingly fragmented TV market.”