Editing Channel 4 (section)

==Funding==
During its first decade, Channel 4 was funded by subscriptions collected by the IBA from the ITV regional companies, in return for which each company had the right to sell advertisements on the fourth channel in its own region and keep the proceeds.<ref>{{cite book
| last        =
| first       =
| year        = 1985
| title       = Report and accounts for the year ended 31st March 1985
| publisher   = Channel Four Television Company Limited
| publication-place =
| page        = 24
| url         = https://assets-corporate.channel4.com/_flysystem/s3/2017-06/annual_report_1985_1.pdf
| access-date = 16 October 2022
}}</ref> This meant that ITV and Channel 4 were not in competition with each other, and often promoted each other's programmes.

A change in funding came about under the [[Broadcasting Act 1990]] when the new corporation was afforded the ability to fund itself. Originally this arrangement left a "safety net" guaranteed minimum income should the revenue fall too low, funded by large insurance payments made to the ITV companies. Such a subsidy was never required, however, and these premiums were phased out by the government in 1998. After the link with ITV was cut, the cross-promotion which had existed between ITV and Channel 4 also ended.

In 2007, owing to severe funding difficulties, the channel sought government help and was granted a payment of £14&nbsp;million over a six-year period. The money was to have come from the television licence fee, and would have been the first time that money from the licence fee had been given to any broadcaster other than the BBC.<ref>{{cite news |url=https://www.independent.co.uk/news/media/jowell-challenges-channel-4-to-justify-16314m-of-public-funding-454035.html |work=The Independent |location=London |title=Jowell challenges Channel 4 to justify £14m of public funding |first=Ian |last=Burrell |date=21 June 2007 |access-date=1 April 2010 |archiveurl=https://web.archive.org/web/20081208112623/https://www.independent.co.uk/news/media/jowell-challenges-channel-4-to-justify-16314m-of-public-funding-454035.html |archivedate=8 December 2008}}</ref> However, the plan was scrapped by the [[Secretary of State for Culture, Media and Sport]], [[Andy Burnham]], ahead of "broader decisions about the future framework of public service broadcasting".<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/entertainment/7750501.stm |work=BBC News |title=Channel 4 switchover cash shelved |date=26 November 2008 |access-date=1 April 2010 |archive-date=29 June 2021 |archive-url=https://web.archive.org/web/20210629044214/http://news.bbc.co.uk/2/hi/entertainment/7750501.stm |url-status=live }}</ref> The broadcasting regulator [[Ofcom]] released its review in January 2009 in which it suggested that Channel 4 would preferably be funded by "partnerships, joint ventures or mergers".<ref>{{cite web |url=http://stakeholders.ofcom.org.uk/consultations/psb2_phase2/statement/ |title=Ofcom's second Public Service Broadcasting Review – Phase Two: preparing for the digital future |website=Ofcom |date=22 September 2016 |access-date=10 February 2013 |archive-date=23 August 2016 |archive-url=https://web.archive.org/web/20160823115935/http://stakeholders.ofcom.org.uk/consultations/psb2_phase2/statement/ |url-status=live }}</ref>

{{As of|2022}}, it breaks even in much the same way as most privately run commercial stations through the sale of on-air advertising, programme sponsorship, and the sale of any programme content and merchandising rights it owns, such as overseas broadcasting rights and domestic video sales. For example, {{as of|2012|lc=y}} its total revenues were £925&nbsp;million with 91% derived from sale of advertising.<ref>{{cite web |url=http://annualreport.channel4.com/Downloads/Channel4_AR12_financials.pdf |title=Financial report and statements |year=2013 |publisher=Channel 4 |pages=112–114 |access-date=12 August 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131105030740/http://annualreport.channel4.com/Downloads/Channel4_AR12_financials.pdf |archive-date=5 November 2013 }}</ref> It also has the ability to subsidise the main network through any profits made on the corporation's other endeavours, which have in the past included subscription fees from stations such as [[E4 (TV channel)|E4]] and Film4 (now no longer subscription services) and its "video-on-demand" sales. In practice, however, these other activities are loss-making, and are subsidised by the main network. According to Channel 4's published accounts, for 2005 the extent of this cross-subsidy was some £30&nbsp;million.<ref>{{cite web |url=http://www.channel4.com/about4/pdf/2005_C4_Complete.pdf |archiveurl=https://web.archive.org/web/20070615192437/http://www.channel4.com/about4/pdf/2005_C4_Complete.pdf|url-status=dead |publisher=Channel Four Television Corporation |title=Report and Financial Statements |year=2005 |archivedate=15 June 2007}}</ref>