Channel 4 has proposed an alternative approach to privatisation following plans from UK Government to take the broadcaster out of public ownership. 

Proposals include expanding numbers of its workforce to be based outside London as the organisation becomes more "northern-based". 

Some 300 roles are already based outside London and under the new plan this would increase to 600 by 2025.

The chief executive of Channel 4, Alex Mahon, said the company "are absolutely not here to protect some sort of status quo or anachronistic institution". 

She added: "We also recognise that standing still in this ever-changing world is not an option."

READ MORE: Scottish Government hit out at 'unnecessary and ill-conceived' Channel 4 sale

However, while Channel 4  “actively participated” in the consultation with the Government, Ms Mahon warned that the privitisation plans could have a potentially “major impact on the television landscape, on where things are made, on who makes them, on what gets funded, and on where people work”.

Channel 4 has been publicly owned since its creation in 1982 by the Conservative government of Margaret Thatcher and is entirely funded by advertising.

However, earlier this year Culture Secretary Nadine Dorries confirmed she would be tabling legislation this year to allow the station to be sold in a decision which was met with widespread criticism. 

Ms Mahon said the channel’s own plans “represent our vision” of what the station can do “whilst continuing to be owned by the British people”.

The Government’s proposed privatisation is “extremely different to the proposal we envisioned, of rooting our impact more in small and medium businesses, and more across the entirety of the UK”.

She highlighted the abolition of “the publishable custom model”, which currently gives permission for Channel 4 to make its own shows and own its own intellectual property.

“Specifically, this would mean a 25% independent quota – whereas 100% of what we currently buy comes from external producers.

“This could mean the loss of around £320 million a year to the indie sector.

“The White Paper only mandates a 35% Ofcom quota of spend out of London, and last year Channel 4 voluntarily spent 50% out of London. This could mean a loss of £86 million a year in the nations and regions.”

READ MORE: Fears Channel 4 privatisation could lead to a Scottish TV 'brain drain'

The broadcaster’s own proposals, which were first presented to the Government earlier this year prior to the DCMS announcement, mention that Channel 4 would “streamline” its presence in London, but “at the moment, there is no plan to make any changes”.

It has its main headquarters in Leeds and would look to expand its digital content production studio, 4Studio, which is also based in the city.

When plans for privatisation were announced, Nadine Dorries had claimed that the public ownership was holding Channel 4 back from competing with streaming giants such as Netflix and Amazon Prime Video. 

In 2021, 13.1% of total Channel 4 viewing came from streaming, Ms Mahon said, an increase from 9.2% the previous year, with 19% of revenues coming from digital advertising.

The broadcaster said it expects to be valued at around £500 million in a sale on the private market, with reports last month suggesting the broadcaster would fetch “at least £1 billion” for the Government’s purse.

Channel 4 warned that privatisation would also hit the value of its supply chain, cautioning it could knock up to £3 billion off the value of the UK production industry and other related areas.

It added that there could also be a reduction of up to 4,000 supply chain jobs which are supported by the broadcaster amid a predicted reduction in investment.

The group also highlighted that there is likely to be “uncertainty and disruption” during the legislative and sale process, which it predicted could take two years.