Channel 4 recorded over £1 billion in revenues with a record amount spent on originated content in the past year. But recent decisions to axe or curtail programmes shows there’s stormy times ahead for the public broadcaster.
After a year that saw Channel 4’s status under threat, Channel 4 has sounded caution about the future. It’s expecting a downturn in the advertising market of 6% this year.
Recently, Channel 4 has cancelled Naked Attraction, Four Weddings, Scared of The Dark and Rescue: Extreme Medics. It’s cut back episodes of The Last Leg and last month, the broadcaster confirmed The Big Narstie Show wouldn’t be renewed. Meanwhile other shows including The Andrew Neil Show have been ‘rested’ and won’t return to TV screens this year.
Commenting on Channel 4’s performance in the past year and how it intends to survive the advertising downturn, Alex Mahon, CEO of Channel 4, said:
“With Channel 4’s financial sustainability and ownership status no longer in question, we are doubling down on what we were created for: to deliver the best and broadest range of programmes that truly reflect British lives; to engage young people with genuinely public service content; and to prioritise digital growth to be where the audience is. As the industry sees through this cyclical advertising downturn, Channel 4 will be at the forefront, creatively more relevant, vibrant and distinctive than ever, especially for young audiences. We will continue to innovate, embrace change and adapt to the challenges of the future.”
Channel 4 profit good news for taxpayers
Channel 4 remains in public ownership, but it doesn’t cost taxpayers a thing, as once again the broadcaster recorded a pre-tax surplus of £20 million before exceptional items including the one-off retention payment of £17 million linked to privatisation. This is the third year in a row the broadcaster has recorded a surplus, with Channel 4 increasing its net cash reserves to £253 million and group net assets to £560 million.
By the close of 2022, one-third of Channel 4’s total revenues no longer came from linear advertising. Non-advertising revenues, including film and partnerships revenue, reached £121 million, 11% of Channel 4’s total revenues in 2022. Combined with 22% of revenues from digital advertising this means one-third of Channel 4’s income was not from linear advertising.
Over the course of 2022, Channel 4 achieved 91 programme awards – the highest level since 2014. Earlier this year, the broadcaster picked up 13 TV and Craft BAFTAs, the broadcaster’s best performance in 22 years.
Marc Thornham