The UK’s BBC and Channel 4 should forge closer ties in an effort to compete with global streaming services such as YouTube and Netflix, according to Ian Murray, the UK’s Minister for the Creative Industries.
Murray has called for “deeper and more strategic partnerships” between the two UK public service broadcasters at a time when audiences are increasingly turning to on-demand platforms, according to a report in The Times.
His comments come a month after a report from regulator Ofcom found that YouTube has become the second most-watched video service in the UK, behind the BBC and ahead of ITV.
Murray said stronger alliances or “consolidation” could bolster traditional channels by using economies of scale in a rapidly changing, competitive market.
He also warned that if public service broadcasters did not work together, they would have to follow the footsteps of other countries, including Germany and France, in pursuing large budget cuts.
“The television market is transforming,” he said in letters to Dame Melanie Dawes, the Ofcom Chief Executive, and Sarah Cardell, the Chief Executive of the Competition and Markets Authority (CMA), The Times reported.
“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.”
The correspondence, seen by The Times, added: “In this context we believe there could be significant benefits to public service media providers pursuing deeper and more strategic partnerships, particularly those that enable them to engage with hard-to-reach audiences and benefit their financial sustainability.”
His comments come amid signs of change within the broadcast sector, including a proposed merger of Comcast’s Sky with ITV.
According to The Times, sources in the Department for Culture, Media and Sport (DCMS) have indicated that ministers would ensure regulators don’t block any future deal between the BBC and Channel 4.
Channel 4 recorded 69 billion viewer minutes on its streaming service in 2025, up 14% year-on-year. Discover more here.
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