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S4C is controlled by the S4C Authority (Awdurdod S4C), an independent body unconnected to Ofcom, the regulator of other UK television channels such as ITV and Channel 4, although it works in conjunction with Ofcom.

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From 2013, responsibility for funding S4C began to transfer to the BBC, with the DCMS reducing its funding by 94% by 2015. The BBC will provide around £76m of funding to S4C by this date, resulting in a cut of around 25% to S4C's annual budget.

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So, how is it structured and funded?                                                                                                                Who owns S4C

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So, how is it structured and funded?                                                                                                                Who owns S4C

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From its inception S4C was part publicly-financed: funding came both from its advertising revenue and a fixed annual grant from the UK Department for Culture, Media and Sports (DCMS), receiving £90m of funding in 2011. Additionally, some Welsh-language programming (including Newyddion and Pobl Y Cwm) was produced by BBC Wales as part of the BBC's public service remit, and provided to S4C free of charge.

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In 1980, the former president of Plaid Cymru,Gwynfor Evans, threatened to go on hunger strike if the Conservative government of Margaret Thatcher did not honour its commitment to provide a Welsh-language TV service. The channel started broadcasting on 1 November 1982, the night before Channel 4's opening. S4C appointed its first female CEO, Iona Jones, in 2005.

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During the 1970s, Welsh-language activists had campaigned for a TV service in the language, which already had its own radio station, BBC Radio Cymru. Both the Conservative and Labour parties promised a Welsh-language fourth channel, if elected to government in the 1979 General election Shortly after the Conservatives won a majority in the election, the new home secretary William Whitelaw decided against a Welsh fourth channel, and suggested that, except for an occasional opt-out, the service should be the same as that offered in the rest of the UK. This led to acts of civil disobedience, including refusals to pay the television fee, thereby running the risk of prosecution or even a prison sentence, and sit-ins in BBC and HTV studios. Some took more extreme measures, including attacking television transmitters in Welsh-speaking areas.

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Before the launch of S4C in 1982, Welsh speakers had been served by occasional programmes in Welsh, broadcast as regional opt-outs on BBC Wales and HTV Cymru Wales (the ITV franchise in Wales), usually at off-peak or inconvenient times. This was unsatisfactory for Welsh speakers, , who found the English language programmes seen in the rest of the UK often rescheduled or not transmitted at all.