Channel 4 unveiled plans to go to internal production and launch a new creative investment fund, marking the end of its 42 years of history as a publisher-Broadcaster.
The British public service broadcaster simultaneously published its 2024 annual report showing record streaming performance while faced with financial challenges, although its deficit has improved considerably as its strategy in advance is gaining momentum.
The double-track approach to intellectual property property (IP) comes after the recent media law eliminated the restriction of the publisher-Broadcaster which had previously prevented Channel 4 from producing its own emissions.
“The plans that we are announcing today are the centerpiece of our strategy to diversify income and secure the long -term sustainability of Channel 4,” said Alex Mahon, CEO, and Jonathan Allan, COO and interim CEO, in a joint declaration. “The creation of internal production and our investment in independent issues will allow us to generate new income flows which do not depend completely on the advertising market.”
From 2026, Channel 4 will develop internal production capacities focused on genres of factual entertainment, reality and entertainment with international potential. The broadcaster actively recruits an experienced creative advance for this new division, which will work as a separate company with a “clear operational separation” from the channel 4 commissioning team.
To reassure the independent production sector – long in the vital field of the production of Channel 4 – the diffuser will increase its independent production quota qualified by 25% to 35%, the greatest commitment of any British diffuser. The channel has also published new commissioning directives to ensure a “level playground” for producers.
The existing independent growth fund of Channel 4 will evolve towards the new creative investment fund, going from its previous approach to take minority participations in start-ups and in India scale to build majority participations with “a clear path to 100% of ownership”.
Caroline Murphy, who has run the independent growth fund for six years, will resign later this year. Under its leadership, the fund has expanded its investment in various Indies belonging to nations and nations and regions, the majority providing solid returns, including successful sales of tension to the BBC and Eagle Eye to Itv Studios studios.
The annual broadcaster report revealed total revenues of 1.04 billion pounds Sterling ($ 1.39 billion) in 2024, marking the fourth consecutive year greater than the 1 billion pounds sterling. Digital advertising has reached 306 million pounds sterling ($ 410 million), which represents 30% of total income – double the market average and one year ahead of its target of 2025. Non -linear income now represents 39% of the total of Channel 4.
Despite the success of the income, Channel 4 has always declared a deficit before tax, although it has been considerably reduced by 50 million pounds sterling ($ 67 million) to only 2 million pounds Sterling ($ 2.6 million) before exceptional items. The broadcaster closed the year with 111 million pounds sterling (149 million dollars) in cash and no debt drawn.
The investment of the diffuser content remained high at 643 million pounds Sterling ($ 862 million), including 489 million pounds Sterling ($ 656 million) in British programming – representing 62% of income, a higher proportion than competitors. Investment in the content of nations and regions increased by 4% to 200 million pounds sterling ($ 268 million).
Streaming performances have exceeded the market with up 13% views for a 1.8 billion record, now representing 18% of total visualization. Social platforms have also shown significant growth, British YouTube views increasing by 26% to 340 million.
“In 2024, Channel 4 showed how much our powerful public service model can evolve and prosper in a changing world,” said Mahon, who will resign in July after having directed the diffuser thanks to his digital transformation. “Fast Forward is delivered – in a creative, digital and commercial way. I am incredibly proud of what we are doing. ”
Allan, who will take over as an acting CEO, added: “We have made great progress in the reshaping of Channel 4 in a public service streamer oriented to come. Our growth in streaming and our digital innovation exceed the market, with disciplined financial management and a daring content investment. The momentum is real, and I am excited for the future. ”
The creative and financial changes arise while the British broadcaster celebrates the victory of 106 major prizes in 2024, notably BAFTA and Emmy International Emmy, while his Film4 “Poor Things” and “The Zone of Interest” productions have collectively won six Oscars.
