The station of the United Kingdom Channel 4, directed by CEO Alex Mahon, who recently said he would resign this summer after eight years, will move to internal production in a change of sea and will also begin to look for production companies with a «strong commercial potential» in an evolution of their acquisition strategy.
In the course of its 40 years of history, the station has concentrated on the green light of its independent production companies, but the United Kingdom Media Law 2024 eliminates a restriction that now opens the door for Channel 4 to create its own internal content.
The news occurred when Channel 4 reported a 2024 deficit per year 2024 before exceptional items of £ 2 million ($ 2.7 million), or £ 12 million ($ 16.1 million) by including restructuring costs, an improvement of a record loss of £ 52 million £ 52 million due to a «prolonged» advertising fall.
During a press event on Wednesday, Mahon, Content Director Ian Katz, Operations Director Jonathan Allan, financial director Lucy Thomas and the interim president Dawn Airy discussed the new production strategy and the state of the business.
Channel 4 said that a new «double track approach» would follow to invest in intellectual property (IP), «incorporating a movement in stages in internal production and the launch of a new creativity
Investment fund «focused on buying or building majority participations in independent production banners and» content producers with strong commercial potential. «
The strategy is an evolution of the current Indeie Growth Fund of Channel 4, which has been investing in newly created indies, such as Yeti, Five Mile Films and Warp, since 2014. Now, instead of being an early strategic partner for growth at the next level, the announcer «will seek to take a greater participation of capital in scalable companies, with a clear path to 100 percent of owners.»
The broadcaster did not detail the size of the new investment fund, and executives only emphasize that channel 4 is much smaller than the tastes of ITV Studios or BBC Studios and «there will be no seismic change» immediately.
Channel 4 also committed to an increase in the fee for independent productions of 25 percent to 35 percent.
«In an increasingly competitive world, this diversification of income is an essential step to support the role of Channel 4 as a sustainable champion for independent production and will allow an investment of long -term content with indies in all forms and sizes and in each part of the United Kingdom,» said Channel 4.
Its strategy of developing internal production capabilities is designed «to create returnable and scalable formats centered (in) international entertainment, reality and entertainment genres with international potential, allowing Channel 4 to benefit from global income flows to boost their investment to the production of the United Kingdom.»
The internal production operation of the Channel 4 will be established as a separate entity «with a clear operational separation, the reports of reports and the different management of the implementation of channel 4, the processes to guarantee fair competition for commissions and will be accompanied by a new process of dedicated complaints for producers,» he said, adding that «he can launch the channel 4 platforms and other means.» Internal production is expected to begin in 2026.
Channel 4 is looking for an experienced creative leader to launch the new division, informing Allan. The executive «will be responsible for marrying creative success with commercial growth, the development and promotion of new formats to travel worldwide, while building a successful IP catalog,» he said.
«In fact, it is a great change in our potential business model, and that we believe it is essential for the long -term sustainability of channel 4,» Allan told the press on Wednesday. «This movement will be administered very carefully, and its initial scale will not interrupt the market, or change how we commission,» he also promised. Noting that Channel 4 does not focus on a profit model and its high content spending ratio, concluded: «A stronger and safer channel means a stronger production sector.»
Channel 4’s revenues increased 1 percent to exceed £ 1.0 billion ($ 1.34 billion) for the fourth consecutive year. The total investment of Channel 4 in content amounted to £ 643 million ($ 865 million), or 62 percent of revenues, compared to 65 percent in 2023. The station stressed that this is «a higher proportion
than competitors. »
2024 was «another volatile year for the economy of the United Kingdom and the advertising market, made up of global uncertainty, persistent inflation and high interest rates», and the macroeconomic perspective remains «uncertain,» Thomas said during Wednesday’s press conference. He pointed out that «the difficult but necessary options to manage costs, including the rationalization of our operations», and a disciplined approach allowed the broadcaster to provide «solid financial and operational performance,» which also expressed confidence in its future perspective.
A picture shown by Channel 4 Management on Wednesday highlighted what the station previously promoted as «accelerated digital success.» The transmission visualization minutes reached 63.4 billion in the last year, compared to 55.9 billion in 2023. Transmission views increased by 13 percent of 1.6 billion to 1.8 billion, above the prognosis previously 1.7 billion.
The visualization of channel 4 from the transmission increased from 15 percent to 18 percent, and digital advertising revenues increased from 27 percent by 2023 to 30 percent in 2024. The United Kingdom station reiterated on Wednesday its goal of reaching 50 percent in 2030.
Last year, Channel 4 presented a five -year strategy entitled «Fast Forward» to remodel and «accelerate its transformation into an agile and genuinely digital public service streamer for 2030». Proposing to reduce staff by 18 percent, including around 200 layoffs and the closure of approximately 40 unfilling roles, he said at the end of January that «about 70 percent of closed roles would be outside the inherited operations.» He added: «This would return the staff near the levels of 2021, but with the organization in the correct way to offer greater digital growth and bring public service means to the future.»
Allan promoted Wednesday: «We have made great advances in the remodeling of channel 4 in a public service streamer oriented to the future. Our transmission growth and digital innovation are surpassing the market, with disciplined financial management and investment in bold content.»
Mahon, who will leave the station in July, with Allan assuming the role interim, said Wednesday: «In 2024, Channel 4 showed how powerfully our public service model can evolve and prosper in a changing world. The rapid progress is delivering, in a creative, digital and commercial way.»
He concluded: «The purpose of Cannel 4 has never been more vital, and I leave sure that the organization will continue to interrupt, challenging and promoting national conversation in the coming years.»
During a press conference, Mahon also emphasized: «The future of public service media is under the pressure of global players.»
When asked about the threat of the president of the United States, Donald Trump, of tariffs on foreign films, said: «Tariffs are a concern for the film industry. We have the greatest financing of the British film in terms of film4 … so we do not want tariffs … interrupt production. But obviously the film industry is in a kind of waiting moment and view.»
Katz, in the press event on Wednesday, promoted film4 films of 2024 as Poor things, The area of interest, Earth’s breastand How to have sex. And he shared that the company was «excited by our next board», like Oliver Hermanus’ The Sound HistoryStarring Paul Mescal and Josh O’Connor, who premieres at the Cannes Film Festival on Wednesday night.
In terms of drama, Katz argued that «our contribution to British creativity is stronger than ever», promoting close dramas such as Russell T Davies’ Tip tipDaisy Haggard’s Mayaand Jack Thorne’s Falling. He shared that, in general, the next program is «what I think is the strongest drama list in the history of Channel 4».
(Tagstotranslate) BBC (T) Channel 4 (T) International (T) ITV
