Channel 4 has published its annual report for 2023 – later in the year than usual due to the General Election – and provided in-year update on 2024 progress.Performance highlights include:
- 2023 revenues stood at £1.02 billion, topping £1 billion for the third consecutive year, representing a resilient performance in a year of significant advertising downturn
- Digital revenues increased 10 per cent to £280 million, accounting for 27 per cent of total revenues – far ahead of the market and forecast to reach 30 per cent in 2024, a year ahead of target
- Non-advertising revenue at £101 million (10 per cent)
- Total investment in content (£663 million) accounted for 65 per cent of revenues
- Deficit of £52 million planned as part of strategy to maintain investment in original content (at second-highest level £520 million in 2023) and fund digital transformation
- Planned deficit year followed record surpluses in 2020 and 2021 --Streaming minutes up 23 per cent (reaching a record 1.6 billion) in 2023 – buoyed by titles such as The Piano, The Couple Next Door, Russell Brand: In Plain Sight and Big Boys – while 2024 data shows 25 per cent increase year-on-year, outpacing the biggest streaming services --Channel 4 says it is the only major commercial broadcaster to grow overall viewing in 2024 to date, fuelled by new and returning hits including To Catch a Copper, Married at First Sight, The Gathering and The Push, alongside coverage of the General Election and Paralympic Games
Sir Ian Cheshire, Chair of Channel 4, said: “Alex Mahon and her team have done a tremendous job navigating last year’s incredibly challenging advertising downturn to deliver resilient results and lay the foundations for Channel 4’s ambitious Fast Forward strategy and the success we are seeing in 2024. Channel 4’s unique public service remit and its sustainable commercial model creates immense cultural and economic benefit across the UK and this report, as well as the in-year update, demonstrates its continued long-term sustainability.”Alex Mahon, Chief Executive of Channel 4, added: “2023 was another year of strong strategic progress as we grew the size of our digital business, delivering market-leading digital revenue diversification and record streaming viewing. Our planned deficit and reduced cash were the intentional results of financing our transformation from linear to digital. During this transition, we need to keep buying the different formats and genres people like to watch on linear and streaming. As a result of our investment in this transformation, we are already seeing the upside of prioritising spend on content and digital innovation. In 2024, we have set out the next phase of Channel 4’s growth with a robust and ambitious strategy for the future and have seen a stabilisation of the advertising market. We are also at the point where digital viewing overtakes linear across the market. By committing even further to our digital transformation with our Fast Forward strategy, we are keeping Channel 4 ahead of the curve and protecting its ability to continue delivering trusted and distinctive content to the British public.”Separately, Ofcom has published its response to Channel 4 Corporation’s Statement of Media Content Policy.Under the Communications Act 2003, Channel 4 must prepare an annual statement setting out its plans for meeting its content duties in the coming year, and reporting on its performance over the past year. The broadcaster must consult with Ofcom before its publication and take the media regulator’s guidance into account.Ofcom acknowledged it has been a challenging year financially for Channel 4 – the impact of which will likely be felt into 2025 and beyond – but concluded that the Corporation performed well against its remit and media content duties in 2023.Ofcom highlighted:
- the performance of Channel 4’s news and current affairs content, which remains highly valued by audiences for its distinctiveness, trustworthiness and accuracy. The quality of Channel 4’s journalism was also recognised at the BAFTA’s and Royal Television Society Awards in 2024, including two awards for its Dispatches investigation into allegations against Russell Brand;
- the success of its initiatives and content targeted at younger audiences. This includes the digital-first current affairs strand, Untold, and dedicated YouTube channel, Channel 4.0, which both showed promising performance in 2023; and
- the continued growth of Channel 4 Streaming, which reported a record year of viewing in 2023.
Ofcom said there are “important areas” that it expects Channel 4 to focus on in the future. A statement outlined:“First, we recognise its Fast Forward strategy as a positive step in driving forward Channel 4’s transition to a digital-first public service streamer. But we now expect to see more detail on how these high-level strategic aims will be implemented, as well as specific targets for delivery. In delivering its digital-first commissioning strategy, we also want to see Channel 4 striking the right balance between tried-and-tested programming and innovating and taking risks on new commissions and formats.”“Second, Channel 4 must ensure it is investing in commissioning and programming outside of London. This includes being much more open and transparent about its impact in the nations, publishing regular data on its approach to commissioning, and ensuring a strong and ongoing presence in each of the nations. Ofcom will be monitoring this area closely in the coming years.”“[This] response has been prepared alongside our work to renew the Channel 4 licence. Following an extensive consultation process, we will soon publish our decisions on conditions for the new licence to secure Channel 4’s continued delivery of high-quality public service media in the future,” concluded Ofcom.
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