The BBC and Channel 4 are in early discussions over a broader commercial partnership that could combine parts of their operations, as Britain’s public broadcasters look for ways to reduce costs and respond to growing competition from global streaming platforms.
Two people familiar with the talks said one proposal would bring together Channel 4’s advertising business, services including E4 and Film4, and its video-on-demand operations with UKTV, the BBC’s commercial subsidiary.
Under the proposal, the combined business could be jointly owned by the BBC and Channel 4. The arrangement would represent a wider collaboration than an earlier idea from BBC Director General Matt Brittin, which involved making Channel 4 content available through the BBC’s iPlayer platform.
The discussions could gain momentum next year, depending on progress over a new funding agreement between the BBC and the UK government. The scope of a potential joint venture could also expand as negotiations develop.
Channel 4’s main broadcast channel would remain outside the proposed venture. However, the broadcaster could potentially receive fees from the joint operation, according to the people familiar with the discussions.
The potential tie-up comes as traditional television viewing continues to decline while major streaming companies capture a growing share of advertising spending. Sharing infrastructure and commercial operations could help the public broadcasters manage costs while maintaining their ability to compete in a changing media market.
A BBC spokesperson said greater collaboration among Britain’s public service broadcasters was important for the industry to remain competitive internationally.
Channel 4 declined to comment on speculation about the talks but said it supported greater cooperation across public service media. The broadcaster pointed to its existing commercial relationship with the BBC, including advertising sales for UKTV and the carriage of U on its streaming service.
The discussions remain preliminary, and no final agreement has been reached on the proposed structure or the assets that could ultimately be included.