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Michael Grade’s appointment as the new BBC chairman last week will, it seems, do little to allay fears about the BBC’s increasingly commercial behaviour.

The charismatic Grade, who has a 40-year history in commercial media, including a nine-year stint as chief executive of Channel 4, will join the BBC at the most difficult period in its history.

He replaces former chairman Gavyn Davies, who left the BBC suddenly after the Hutton Report was published. Director general Greg Dyke’s dramatic departure followed Davies’ resignation.

Grade’s first job at the media giant after he joins in mid-May will be to oversee the appointment of Dyke’s replacement.

The industry gave Grade’s appointment a cautious welcome this week.

“Michael is a consummate professional, but, in the past, he has also been a populist as regards programming,” said Jim Marshall, chairman of the Institute of Practitioners in Advertising’s media futures group and the Starcom UK Group. “After the competitiveness of Greg Dyke, the BBC must return to a stricter and more tightly focused publicservice remit. It remains to be seen if Michael Grade has the appetite to do this.”

Hugo Drayton, managing director of Telegraph Newspapers and one of the most outspoken critics of the BBC’s commercial forays, said: “Grade certainly has experience, energy, independence, charisma and a feel for public service and modern tastes: not a bad start. The obvious concerns are around that very experience – that he may find it irresistible to get closer to the DG’s role.”

However, Jim Hytner, marketing director of ITV, was pleased by Grade’s appointment, saying that it was good news for both the BBC and ITV.

“It’s a fantastic appointment for ITV – we need the BBC to thrive, as the BBC needs ITV to.

There is no doubt the BBC will thrive under Grade,” he said.

Grade, whose appointment was greeted warmly by BBC staff, will have to steer the BBC through the renewal of its charter. The process, being overseen by the Department for Culture, Media and Sport, is proving controversial. The commercial media industry is calling for a more tightly defined remit for the BBC’s public-service broadcasting activities.

Grade said: “I remain committed to the licence fee as the best means of funding the BBC for the foreseeable future.”

Michael Grade

Grade, who has a reputation as a flamboyant and charismatic leader, was dubbed “pornographer-in-chief” by Daily Mailcolumnist Paul Johnson during his time as chief executive at Channel 4.

Scion of a famous showbusiness dynasty, Grade is the son of Leslie Grade, the theatrical agent known for booking stars such as Bob Hope and Danny Kaye.

This Charlton Athletic fan’s career path has taken him through several of the UK’s leading media companies: 

• 1964: sports reporter, Daily Mirror 
• 1973: head of entertainment and director of programmes at London Weekend Television 
• 1986: BBC TV director of programmes 
• 1988: Channel 4 chief executive 
• 1997: chief executive of First Leisure 
• 1999: chairman of PinewoodShepperton Studios