So this is it! After over 18 months of talk, today we learn that the race to buy the UK's fifth nationwide terrestrial broadcaster, Channel 5, from RTL Group is in its final few days or so, with a shortlist of 3 potential buyers: Portland TV (UK), Channel 4 (UK), and either Timw Warner or NBC Universal.
A tie-up with Channel 4 is oft talked about, but C4's public service remit is not exactly a match with Channel 5's mainstream entertainment based fare.
Portland, owned by colourful UK based newspaper proprietor, Richard Desmond, currently operates only soft-core porn TV channels. Whilst the buy may thus face few regulatory hurdles guarantying a quick sale, we are in unchartered waters as to what viewers might end up with as a result!
At a time, just over 2 years before the UK's switch to digital television is completed and Channel 5 therefore faces an ever tougher fight for diminishing audience share, a sale to the likes of TW or NBCU can surely be the only option that makes logical sense. Both already have well respected presence in UK via satellite and cable channels, but these are not regarded as being mass market generalist offerings. The UK needs a "new" player that thinks differently in its mainstream broadcasting market, and that new player must really have content power if Channel 5 isn't to disappear into oblivion in the digital age. In TW or NBCU, there is also the experience, different US way of thinking, and scope for creative innovation, possibly even by use of interactive services, to give dominant UK commercial TV market leader, ITV plc, a run for its money yet.
Whoever the victor, UK commercial TV is about to undergo a change not seen before. Furthermore, if TW or NBCU fail to enter the market on this occasion, it must be almost certain that one or other of them will be back within a year or so but on more hostile terms for ITV plc whose own digital strategy is currently lacklustre at best.
