Speaking at a Broadcasting Press Guild gathering yesterday, Purnell suggested that any privatisation of Channel 4 could now be on the backburner.
Pernell said: "I have never been in favour of privatising Channel 4. Ofcom's public service review will look at this. But as the market evolves with more and more channels, there is going to be more of a premium on impact and innovation."
A privatisation of the broadcaster is believed to have been looked at by the Treasury when Gordon Brown was still in charge.
The government will need to make a decision on how to fund Channel 4 as digital switchover nears -- the current arrangement is that the broadcaster does not pay for the analogue spectrum it uses and can make money from advertising.
Channel 4 itself is against privatisation, but is lobbying to get free digital spectrum.
Purnell also touched on the funding of the BBC, which is internally debating possible cuts in the wake of a lower-than-expected licence fee settlement from the government.
The settlement was "fair" according to the minister, who said: "£3.5bn is a lot of money and will enable the BBC to play a central role."
In another speech tonight at the Royal Television Society Cambridge Convention, Purnell is expected to cover the future of public service broadcasting.
He yesterday said the challenge for the broadcasting industry was "not to be gloomy and introspective" after its year of controversy.
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