A British Leyland of TV is the Government's worst idea yet

Telegraph

a day ago

A show about a good-looking human rights lawyer who becomes a triumphant, reforming prime minister? Or a mini-series about a brilliant, glamorous economist who becomes Britain's first female chancellor? Perhaps a movie about a fiery red-head who works her way up from poverty to become the most powerful woman in the country?
As the Government paves the way for a potential merger between ITV, Channel 4, and Channel 5 to create a single, state-backed commercial broadcaster, it is not hard to imagine the kind of shows it might commission.
But hold on. A British Leyland of television is the Government's worst idea yet. What the industry actually needs is more competition – not less.
It may still be a few years off. But Sir Keir Starmer's Labour Government is very clearly paving the way for a major consolidation of the British broadcasting industry. Last week, as part of its shiny new 'industrial strategy', it opened the door to removing the barriers that prevent a merger between the existing terrestrial broadcasters. Apparently, ministers will examine 'possible consolidation between broadcasters', along with 'closer strategic partnerships'.
Meanwhile, the Competition and Markets Authority (CMA) and Ofcom will be asked to review their definitions of 'television advertising' to include YouTube and Netflix, which again will make mergers easier.
Add it all up, and it is not hard to see where this is going. We will need a single, state-backed commercial broadcaster to cope with a changing market, stand up to the American streaming giants, and preserve what used to be one of the UK's strongest industries. Heck, they could even bring in the marketing whizzes who gave us Great British Energy and Great British Railways to come up with the branding for Great British Television.
Of course, we all understand that something needs to be done. In a world where streaming dominates, and with most people under 30 barely even aware of what traditional broadcasting through signals and aerials was, the industry is in an increasingly dire position.
ITV, the biggest of the three, has seen its share price slump from 265p 10 years ago to just 80p now, and the broadcaster is only worth £3bn. There has already been plenty of speculation about a break-up, perhaps with a sale of its production unit, or else a full-scale takeover of the company, probably by a foreign buyer. Channel 4 has been slashing jobs and cutting back on its programming budget as it grapples with a declining advertising market.
Meanwhile, Channel 5, which has never been a huge success since it was launched in 1997, is also potentially in play as its American owner Paramount prepares for a takeover by media company Skydance. Why not put all three together and create a new British-owned powerhouse in commercial broadcasting?