The BBC and Channel 4 are exploring the possibility of more extensive collaboration between their commercial divisions. According to Reuters, the British public service broadcasters have held initial talks with the government on this matter. The focus is reportedly on the possible establishment of a jointly owned company.

One option is to bundle Channel 4’s advertising business, along with channels such as E4 and Film4, and the video-on-demand services with UKTV. The BBC’s commercial subsidiary could be incorporated into a new joint venture, in which the BBC and Channel 4 would each hold a 50 per cent stake. The main linear channel, Channel 4, would be excluded from this.

These considerations are driven primarily by cost pressures and changes in the media market. Both organisations are facing extensive cost-cutting programmes, whilst viewers and advertising revenue are increasingly shifting towards streaming platforms and global technology companies. The BBC aims to save around £500 million over three years and announced in June that it would be cutting 550 jobs. Channel 4 plans to cut around 340 jobs.

No decision has yet been taken on the possible joint venture. Discussions could intensify next year, depending on the negotiations regarding the BBC’s future funding. Both broadcasters emphasise, in principle, the importance of closer cooperation between the UK’s public service media organisations.