The Week: Media news - BBC tells C4 to make cuts

The BBC's director-general, Mark Thompson, has rejected proposals for Channel 4 to receive a stake in its commercial arm, BBC Worldwide, to help plug its estimated £150 million funding hole. Instead, the BBC advised Channel 4 to cut its costs, in response to Ofcom's public service broadcasting review.

The BBC has set efficiency targets over the next five years in order to make savings of 20 per cent. Thompson argued that any profits made by BBC Worldwide should benefit the services given to its licence-fee payers.