BBC, Channel 4 rethink rivalry as costs mount

The British Broadcasting Corporation (BBC) and Channel 4 are exploring a potential merger of operations, according to two sources familiar with the discussions. The proposed joint venture could involve combining Channel 4's advertising and video-on-demand services with UKTV, a commercial subsidiary of the BBC. The merged entity could be equally owned by the BBC and Channel 4, marking a broader partnership than previously mentioned.

If implemented, this joint venture could help both broadcasters cut costs and secure their future amid declining linear viewing and increasing competition from streaming services. The move would not include Channel 4's flagship broadcast channel. Both broadcasters have expressed support for increased collaboration in the public service broadcasting industry to thrive globally.

Channel 4, which is government-owned and funded through advertisements, and the BBC, primarily funded by a TV license fee, are both facing the need to reduce costs. The BBC recently announced 550 job cuts as part of a £500 million savings plan, while Channel 4 cut about 340 jobs last month. The talks, which involve UK Government Investments, the entity managing Channel 4, could be expanded next year based on the BBC's progress in securing a new funding deal with the government.