The media watchdog's review of public broadcasting, released today, also suggested that BBC assets could be used, or the excess licence fee funding that is currently "ring-fenced for the digital switchover help scheme" could be retained to support other providers.
The BBC has made thousands of job cuts after it won a lower licence fee settlement from the government. A further reduction would likely mean more cuts for the public service broadcaster.
Other suggestions made by the media watchdog include direct funding from the government and a levy on commercial broadcasters.
Ofcom said ITV, Channel 4 and Five have been struggling to finance their public service programming.
Research carried out by Ofcom showed there has been a 25% drop in spending in these areas over the last five years, as commercial broadcasters look to focus on areas where they can make most revenue. Traditionally this has not been public service broadcasting, leading, for example, to cuts in local news services by ITV.
It also found that there has been a 17% decline in the public service channels' share of viewing since 2003, increasing to 22% among 16- to 24-year-olds.
The regulator said: "It is clear that the regulatory and funding model which supports today's public service broadcasting framework has had its day. It is too fixed in linear media and too inflexible. As a result, it is unsustainable."
Ofcom warned that there is a danger of the BBC becoming the sole provider of regional news programmes and children's shows in particular and said that this would be detrimental to broadcasting as a whole.
Therefore Ofcom suggested several ways to safeguard competition, including Channel 4 being given a larger public service role or letting commercial broadcasters bid for funding.
Channel 4 has welcomed Ofcom's findings and, as to be expected, is pleased with the above proposal.
Andy Duncan, Channel 4 chief executive, said: "We are pleased that most of the models for debate proposed by Ofcom for the future delivery of public service broadcasting would include a major role for Channel 4.
"Ofcom have outlined the potential sources available for providing the additional public funding, which they make clear is now required to maintain plurality in the provision of public service broadcasting and we look forward to discussing our views with them about how we can secure a strong future both for Channel 4 and for public service broadcasting as a whole."
This was the first phase of Ofcom's Public Service Broadcasting report and it is looking for comments on its proposals.
.jpg)
.jpg)