LONDON -(Dow Jones)- U.K. communications regulator Ofcom Thursday said Lord Terry Burns had been appointed the next chairman of broadcaster Channel 4, effective January 2010.
Lord Burns, aged 65, who will join the Channel 4 board with immediate effect, replaces Luke Johnson who retires Jan. 27.
One of his first tasks will be to appoint a new chief executive, after current CEO Andy Duncan said in September he would step down before the end of the year.
Commenting on his appointment, Lord Burns noted "this is a time of great change as we experience the impact of the rapid development of digital technology in the communications sector," a trend reflected in the broadcaster's recent decision to broadcast its shows on YouTube after first being viewed on TV.
Channel 4 also needs to reverse a financial shortfall it estimates will have reached GBP150 million by 2012. Its preferred option is for a tie-up with the British Broadcasting Corporation's commercial arm, BBC Worldwide, over a tie-up with commercial terrestrial rival, RTL Group SA (RTL.BT)-owned Five, which has also pushed hard to make a case for a deal.
Lord Burns' appointment was made by Ofcom because Channel 4 is a commercial operator operating under government license. His appointment lasts for three years.
Lord Burns is chairman of Abbey National PLC and non-executive director of Abbey parent Banco Santander SA (STD), as well as Pearson PLC (PSON.LN). He is also former chief economic advisor to the U.K. Treasury.
-By Adrian Kerr, Dow Jones Newswires; 44 (0) 207 842 9309; adrian.kerr@dowjones.com