Department for Culture, Media & Sport

“ As a public sector broadcaster, one person’s viewing of S4C broadcasts does not prevent others from viewing them; and S4C cannot feasibly prevent anyone from viewing its service in areas to which it broadcasts. In other words, S4C’s service is a public good, warranting Government intervention. In addition, S4C’s focus on Welsh language and cultural programming leads to positive cultural spillovers, for example through generating interest and engagement in Welsh cultural events. ”

“ Welsh Independent Production sector
It is likely that the reduced funding for S4C will in turn affect S4C’s suppliers. As about 75% of S4C’s grant in aid is spent on commissioning work from Welsh independent production companies, this sector is likely to be particularly affected. Assuming that funding for the Welsh independent production companies remains a similar proportion of S4C’s revised budget, the sector’s income is estimated to reduce by around £80m over the spending review period. ”

“ There are direct impacts on S4C, the BBC and the Exchequer from the proposed policy option. There may also be an impact on the service provided by S4C, which will be determined by the extent to which efficiency gains can be made. On the one hand, if S4C and the Welsh Independent Production sector are able to achieve sufficient efficiency savings, then a similar quality and quantity of programs can still be supplied, but with improved value for money to the Exchequer. ”