PR Week Echo Columns

With the digital switchover looming, the long awaited report commissioned by the media regulator Ofcom and conducted by consultancy firm LEK predicted that Channel 4 will be "operating at a loss by the end of the decade" (Guardian, 5/4).

The abandonment of "British produced programming" (monstersandcritics.com, 5/4) in favour of extravagant expenditure on American TV shows was given particular focus. However, the report was both unsurprising and welcome to Channel 4 CEO Andy Duncan, who will use it to "call for new forms of financial help", (The Times, 5/4) with the Government cited as one possible source. In addition Ofcom have already offered possible routes that the channel could take and the suggestion was that they will continue to support Channel 4 in the future.

LEK's financial analysis allowed a great degree of interpretation: the "optimistic scenario" (Times, 5/4) shows improving profits by 2012 and the "more negative outcomes" which are "more likely" (FT.com, 4/4) predict the channel to be making "losses in excess of £100m per annum" (Marketing Week, 4/4). Many believe that the extent of the financial implications and the direction Channel 4 should now take will not be clear until after "further consideration" (mad.co.uk, 4/4).