1.18

For Channel 4, both the financial review conducted by LEK in 2006-07 and our further analysis for the current review suggest that it will need greater certainty in its funding model if it is to continue to make a robust and effective contribution to public service purposes. In the medium-term, its contribution to public service programming could come under significant pressure: in current affairs, international news, specialist factual programming (such as arts, science, religion and social documentary), original UK drama and scripted comedy, and innovative, risk-taking programming more generally. Its reserves may be sufficient to maintain its public service contribution in the short-term but it needs clarity about its longer-term funding position.