Channel 4 notifies staff of impending major job cuts as broadcaster prepares to accelerate changes to its output.
- Major downturn in advertising revenue causing difficulties for commercial broadcasters.
- Channel 4 plans to release announcement of its future plans by end of the month
- Broadcaster has already asked Ofcom to allow it to make changes to daytime output.
Staff at Channel 4 have this morning received an email from the broadcaster’s chief executive Alex Mahon confirming major job cuts. Up to 200 staff are at risk.
Channel 4 and other broadcasters are facing trouble caused by the worst advertising downturn since 2008. Additionally, major streaming services are muscling in on what remains of the ad market by launching ad-funded services.
Around a quarter of Channel 4’s revenues come from digital advertising on its streaming. Most of the rest of the income is generated through its traditional channels. It’s understood relatively few viewers pay for the ad-free Channel 4+ service; the broadcaster hasn’t released latest figures.
Most of the impending staff cuts are expected to be in London, as Channel 4 has already committed to more staff in the nations and regions.
C4 cuts to focus resources on primetime
Ahead of announcing its strategic plan until the end of the decade, Channel 4 has already asked Ofcom for changes to the conditions in its broadcast licence, which is due for renewal.
Channel 4 wants to be able to drop weekend news bulletins, as well as its short weekday midday bulletin. It also wants changes to its quotas, which would allow it to focus on its primetime linear service. As a result, its daytime service could be stripped back further, with fewer new programmes airing before 7pm. Ofcom is consulting on the proposals. The regulator has already said it doesn’t want Channel 4 to lose its obligation to broadcast weekend news bulletins.
The first step of stripping back daytime came in December, when Steph’s Packed Lunch was broadcast for the final time. Prior to this, Channel 4 dropped Hollyoaks from the main channel, making the soap exclusive to E4 and C4 streaming.
In the past year Channel 4 has been cutting back on the number of new shows it commissions. It’s also cancelled a number of programmes including Scared of the Dark and Rescue: Extreme Medics.
Channel 4’s large presence on traditional TV platforms
Channel 4 currently operates 11 channels: Channel 4, E4, E4 Extra, More 4, Film 4, 4seven. Plus music channels 4Music, The Box, Kiss, Kerrang and Magic (the former Box Plus Network). E4 Extra is the newest of the channels, having launched back in 2022, taking over the old 4Music slot on Freeview.
Meanwhile, the future of its music channel business is uncertain. It operates three music channels (Kiss, Kerrang and Magic) under a licensing deal with Bauer Media, who own the rights to the channel brands. Last October, Channel 4 ceased streaming its music channels via the former Box Plus Network streaming website. Tellingly for a broadcaster aiming to be online-first, they haven’t been added to the main Channel 4 streaming service. The channels currently only broadcast on satellite and cable.
Marc Thornham
Updated 16:55