The warning came as Channel 4 revealed it hopes to form a joint venture with BBC Worldwide to coincide with the publication of Lord Carter's Digital Britain report next month.
Faced with a funding gap of about £150m in the near future, Channel 4 has been negotiating with BBC Worldwide about the formation of a joint venture, based around non-BBC branded assets. It is hoped the venture would go some way to addressing the anticipated black hole in C4's finances.
Speaking at a House of Commons Culture, Media and Sport Select Committee today, Channel 4 chief executive Andy Duncan said: "We are not in danger of going bust, but there will be real damage to our creative output. Now is the moment we need action."
And Channel 4 chairman Luke Johnson added: "There will be a threat of death by a thousand cuts. We will manage as best as we can, but over time, the damage will become material."
Duncan revealed the broadcaster could be just weeks away from sealing an eagerly anticipated joint venture with BBC Worldwide. It is thought such a venture would exploit some of their respective TV, online and print offerings.
"Discussions have been going very well," Duncan said. "The ambition on all sides is to try to get some kind of broad agreement in time for the publication of Digital Britain in mid-June."
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