The government is to proceed with plans to privatize Channel 4, the BBC has been told.
A source said ministers believe public ownership of the channel is holding it back “in the face of a rapidly changing and competitive media landscape”.
Plans for the sale will be included in next month’s Queen’s Speech.
Money from the sale will be reinvested in a “creative dividend” shared by the TV industry.
A portion of this money is used for independent production companies.
Established in 1982, Channel 4 is advertising funded but publicly owned.
It was set up to deliver content to underserved audiences and uses the money it earns from commercials to hire independent program makers.
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A source told the BBC: “Ministers have decided that while Channel 4 is currently performing well as a company, it is held back by state ownership in the face of a rapidly changing and competitive media landscape.
“Channel 4 is a great company with a strong brand built on being creative, innovative and distinctive, but a change in ownership will remove its straitjacket and give Channel 4 the freedom to innovate and thrive so it can long stay in of the future can thrive and thrive and support the wider UK creative industries.”
The source said the channel will remain a public broadcaster, which remains committed to prime-time news.
When it was announced last year that the government was considering privatizing the channel, its bosses warned of “a real risk” for some of its programs.
Channel 4 CEO Alex Mahon said: “We need to ensure that changes to the channel strengthen, not worsen, the media landscape.”
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