Welsh language channel S4C has secured an improved funding deal from the 海角视频 Government which includes 拢7.5m in new money each year from the BBC licence fee to support its digital offering.
The BBC has had its licence fee frozen at 拢159 until 2024, which with high TV cost inflation will mean it will have to make significant operational savings. If the Tories are still in power in Westminster the licence fee could be abandoned through charter review from 2028. Such a move would also put S4C鈥檚 future in question with its scope to generate commercial income far more limited compared to the BBC.
The new five-year agreement for S4C will see, from its next financial year starting in April, all its funding entirely sliced from the BBC鈥檚 annual 拢3.7bn licence fee.
In the current financial year, to end of March, 2022, the Carmarthenshire headquartered public service broadcaster will receive 拢81m, which includes a 拢6.8m grant from the 海角视频 Government鈥檚 Department for Media, Culture and Sport (DCMS) and the rest from the licence fee, The new agreement will see this rising to 拢88.8m, starting from the 2022-23 financial year, and solely financed from the licence fee.
As well as covering what was the DCMS grant funding contribution, the licence fee will also provide annually over the next five-years 拢7.5m specifically for S4C to develop its digital offer. The rise from April follows a five-year funding squeeze for S4C, which at one time had an annual budget of more than 拢100m with annual rises pegged to the higher retail price index measure of inflation.
S4C will continue to receive news and other content from BBC Wales in the Welsh language.
The DCMS said: 鈥淭he Welsh language broadcaster S4C plays a unique role promoting the Welsh language, and supporting our wider public service broadcasting landscape. It will receive a similar settlement and is also allocated an extra 拢7.5m a year to develop its digital offering. This will help it reach more Welsh language speakers including younger audiences.鈥
Culture Secretary Nadine Dorries, appearing before a Culture Select Committee in Westminster in November, said she recognised the importance of the channel in supporting the Welsh language and the creative industries sector in Wales.
S4C Chair Rhodri Williams said: 鈥淭his settlement reflects the faith of the DCMS, and the Secretary of State Nadine Dorries, in S4C鈥檚 vision for the next five years. Given the economic climate, this financial settlement, which comes after months of negotiation between the channel and the government, provides a good basis for S4C to plan for the next period.
鈥淲e thank the Secretary of State and her officials for a constructive and positive process that has shown support for S4C鈥檚 ambition. We are also grateful to the Secretary of State for Wales, members of Parliament, members of the Senedd, members of the House of Lords and a large number of organisations, associations and friends across Wales who supported our cause. Showing that there is cross-party support throughout Wales strengthened S4C鈥檚 case as we submitted our application to the DCMS.
S4C鈥檚 chief executive, Si芒n Doyle, said 鈥淭his is great news for S4C鈥檚 audience in Wales and beyond. In light of the announcement we will now work carefully to implement our plans for 2022-27. We鈥檒l look to see how we can transform our S4C Clic player, ensuring the wider distribution of our content on digital platforms, and improving our visibility on smart TVs. All of this reflects the change in the way people watch content and television programmes.鈥
Chair of representative body for independent production firms in Wales, TAC, Dyfrig Davies, said: 鈥淲e are very pleased to see an increase in funding for S4C. TAC strongly supported the case, and we look forward to S4C will be implementing its plans to commission high-quality programming from the independent production sector in a multi-platform media landscape. This will ensure continuity of service for Welsh-language speakers and learners in Wales and to a wide audience in the 海角视频 and worldwide.鈥
鈥淥verall however a two-year freeze in the TV licence fee will create significant difficulties for the BBC which, as a world leading media organisation, does very important work in supporting the 海角视频鈥檚 creative industries. This generates huge economic and cultural value including for Wales and we have great concerns about this decision and the effect it will have on the creative industries at a time when they are still recovering from the effects of the Covid-19 pandemic.鈥
