The deal between Channel 4 and BBC Worldwide seems doomed after Andy Duncan, the outgoing CEO of U.K. web Channel 4, abandoned his hopes and threw in the towel. “The BBC struggles to be a good partner and is a very complicated organization. It’s naturally an empire that likes to do everything itself and control things. Whereas Channel 4 is naturally a very good partner,” he said to the media. “We are hopeful that some smaller deals can be struck with Worldwide, but I think any progress will now happen next year, when a new chief executive and chairman of Channel 4 have been installed.”

Regulator Ofcom will appoint a Chairman this week to replace U.K. entrepreneur Luke Johnson. The new Chairman’s top priority will be to find a successor to Duncan. Among the potentials are the head of UKTV David Abraham, Warner Bros. U.K. topper Josh Berger and the former head of Discovery Channel Jane Root.

Duncan was convinced that a joint venture between digital services E4 and the UKTV channels would secure Channel 4’s future. The failure in negotiations means new management at Channel 4’s will be forced to look at cost cutting measures and also come up with a viable commercial strategy that will safeguard their reputation for creative innovation. Channel 4’s program portfolio, however, is generally regarded as healthy and as such offers some hope.

Andy Duncan is well known for his lengthy battle to win a public subsidy for the hybrid pubcaster, which also failed.

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