Page:S4C Funding IA 8 Dec 2011.pdf/3

 ====Evidence Base (for summary sheets)====

Reference

Background

Sianel Pedwar Cymru (“S4C”) is a public service broadcaster established under the Broadcasting Act 1990, with a statutory obligation to provide television services of high quality for reception, wholly or mainly by members of the public in Wales and to ensure that a substantial proportion of the programmes broadcast on S4C are in Welsh.

S4C is currently funded by the Government by a formula set out in section 61 of the Broadcasting Act 1990 which is a cumulative retail price index (RPI) increase from November 1996 to November of the current year. On 11 July 2011, a written statement was made in the House of Commons setting out the Government’s plan to reform the funding mechanism for S4C by removing the link with the RPI and add the relevant provision for removing the RPI/funding link to the face of the Public Bodies Bill currently in Parliament

The Broadcasting Act 1990 requires the BBC to provide not less than 10 hours of Welsh language programmes free of charge to S4C. The BBC estimates this to be worth around £20m every year.

Market context

S4C is the only Welsh language television broadcaster which provides Welsh language television programming to the estimated 600,000 Welsh speakers. Although this represents S4C’s potential audience, in practice, S4C competes with other TV services (BBC, ITV, Channel 4, Five, Sky and other smaller broadcasters) for viewers as Welsh speaking viewers do not generally exclusively watch S4C.

In terms of other Welsh language broadcast services, BBC Wales broadcasts a Welsh radio station (Radio Cymru), has a Welsh language website, under statutory provision, provides at least 10 hours a week of programming to S4C, however, it is not a Welsh language TV broadcaster.

Independent Production Companies

S4C does not produce programmes in-house, but commissions work with the Welsh Independent Production Companies. S4C spends approximately 75% of its budget with the independent production sector in Wales. In 2011, it is envisaged that S4C will contract a total of 33 individual production companies to produce programming content for transmission. The independent production companies vary in size from small companies to one AIM-Listed company.

S4C funding and Government announcement

As part of the Government’s commitment to increase the transparency and accountability of all public services, the Secretary of State for Culture, Olympics, Media and Sport has made it a priority to examine the DCMS network of public bodies with the aim of improving accountability and transparency and value for money. He confirmed in a Ministerial statement on 14 October 2010 that alongside changes to other