Ofcom rejects C4's public funding call

Ofcom has told Channel 4 that there is "no immediate case" for it to receive public funding, despite months of lobbying by the broadcaster.

Andy Duncan, the channel's chief executive, has argued that the broadcaster faces a £100 million deficit if it does not receive state aid.

However, in its final proposals on the future of public service broadcasting, Ofcom ruled that Channel 4 should develop its proposals for self-help. These include cost savings, commercial ventures and alliances, including a proposed alliance with the BBC as exclusively revealed by Campaign last summer (30 July).

The report did offer some good news for Channel 4 - it said that the Government should consider funding the expenditure for Channel 4's digital switchover costs and that it would look at improving the position of its channels on the electronic programming guide.

ITV has been told it can cut its poorly demanded PSB non-news regional programming in England this year from three hours to 1.5 hours, while five should continue to be market led. Ofcom also ruled out taking on the governance of the BBC but proposed that it, rather than the Governors, should assess the market impact of any proposed new BBC services.

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