Although Duncan, who announced his resignation last week, would not say which broadcaster was his preferred partner, it is understood that Sky is the most likely option.
Integrating Channel 4's commercial operations with another media company is seen as a good way to protect its financial position. A merger with BBC Worldwide was mooted, but it is believed that negotiations have broken down.
A plan to merge Channel 4's sales house with Sky's could be investigated by regulators, because the combined operation would have a 35% share of the TV ad revenue market.
Insiders predict this could leave any joint entity open to restrictions similar to the Contract Rights Renewal mechanism, which was introduced to protect advertisers from a post-merger ITV abusing its position as market leader.
Referring to his priorities for his final weeks at the channel, Duncan said his main focus would be ‘commercial partnerships' and that he was ‘optimistic these will be concluded'. He ruled out a deal with Five as this would involve a corporate merger rather than solely an integration of sales functions.
Duncan also said he was confident that, by 2012, the BBC would be forced to share licence-fee income with other broadcasters, and that Channel 4 was likely to be a recipient.
‘Channel 4 is recognised as the alternative public-service broadcaster,' he said. ‘This is my most important legacy.'
Duncan, a former Unilever spreads and cooking products marketer, said his next job would probably lie in the media or entertainment sectors.
The Duncan years 2004-2009
- July 2004 Andy Duncan, the BBC's director of marketing communications and audiences, appointed Channel 4's fifth chief executive.
- May 2005 Launch of E4on Freeview.
- July 2006 Duncan continues his mission to make C4 a non-charging broadcaster with the relaunch of Film4 as free-to-air digital TV channel.
- December 2006 C4 launches 4oD, becoming the first broadcaster in the world to offer its full commissioned schedule on-demand via TV and PC.
- January 2007 Treatment of Bollywood actress Shilpa Shetty on Celebrity Big Brother sparks race row. Duncan criticised for appearing on Channel 4 News casually dressed.
- July 2007 4 Digital Group consortium, led by Channel 4 Radio, wins licence to operate second national DAB multiplex.
- August 2007 Launch of C4's time-shifted +1 service.
- October 2008 Plug pulled on Channel 4 Radio.
- March 2008 C4 launches ‘Next on 4' strategic blueprint that identifies £150m shortfall in revenue. Duncan makes case for top-slicing BBC licence fee.
- June 2009 Digital Britain report rules out top-slicing for C4 but encourages a merger with BBC Worldwide.
- September 2009 Duncan announces he is quitting.
In my view Expert comment
Andy Jones, Chief executive, Universal McCann
Channel 4 has done well under Duncan, with its programme diversity, innovation and digital strategy, but it lost its nerve and direction on a couple of big issues, such as the Big Brother racism row and funding issues. Now, C4 needs to focus on being a strong TV station, and providing good content to UK audiences. That means continuous innovation, but it should be wary of unnecessary distractions, such as the ill-fated 4Radio.
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