Britain’s public broadcaster Channel 4 has revealed revenue of 1.02 billion pounds ($1.6 billion) in 2023, despite what is said to be the worst advertising recession since 2008.
Channel 4 CEO Alex Mahon announced the results as part of the broadcaster’s latest annual report, which was published later than usual due to the general election earlier this summer. did.
Despite this, the network is running at a planned deficit of £52m, with Mr Mahon also announcing in January that the company would cut 18% of its workforce and abolish several underperforming linear channels earlier this year. We warned about this when we announced it. The aim is to reduce operating costs by 2030. The broadcaster is predicting a budget deficit next year as well, albeit on a smaller scale.
The annual report says the deficit has meant the publicly owned and commercially funded broadcaster is struggling to move towards a “digital-first future” with a focus on content (£520m in 2023) and streaming platforms. It is now possible to continue investing.
Channel 4 has said it will “prioritize” investment in content for 2023, spending £663, as the TV production industry clings to the mantra of “surviving until 2025″ to weather a second year of commissioning recession. Announced. Of the £1 million (65% of sales), £520 million was spent on original content. In 2023, the competition series “The Piano” was announced as the best show of the year, with 8.8 million viewers and the highest ratings in six years on a new format. Significant resources were spent on the Paris Paralympics this year, which was watched by 20 million people.
As a sign of our investment in digital, revenue there grew by 10% to £280m, accounting for 27% of total revenue (digital accounted for 22% of total revenue in 2022). Its revenue is predicted to exceed £300m in 2024, meaning Channel 4 will reach its target of deriving 30% of its total revenue from digital a year earlier than planned. The company also announced that streaming hours increased by 23% and non-ad revenue reached £101m.
“2023 was another year of strong strategic progress as we expanded the scale of our digital business, delivering market-leading digital revenue diversification and record streaming viewership,” said Mahon. said. “Our planned deficits and reduced cash were the intentional result of funding our transformation from linear to digital. During this transition, we continued to expand the range of formats and genres that people want to watch in linear and streaming. We need to keep buying. As a result of this transformational investment, we are seeing positives from prioritizing spending on content and digital innovation.”
“In 2024, we set out the next stage of growth for Channel 4 with a strong and ambitious strategy for the future, and we have seen stabilization in the advertising market, with digital viewership increasing across the market. We are also at a stage where our Fast Forward strategy will further protect Channel 4’s ability to stay ahead of the curve and deliver trusted, unique content to the British public. .”
The annual report comes as Britain’s television industry continues to be disrupted by economic instability caused by an advertising recession, inflation and deep-pocketed streamers competing for eyeballs and talent.
Channel 4 plans to make around 200 of its 1,200 staff redundant, as well as sell its central London headquarters and consolidate its various commissioning and content teams, including drama and film. I am doing it.
Channel 4 spent much of 2023 fighting the Conservative Party’s privatization plans. In the end, it was decided that, for the first time in its 40-year history, it would be allowed to produce its own content rather than outsourcing it to independent production companies, while remaining publicly owned. . British producers’ group PACT has raised concerns about the changes, warning that they could cause further damage to Britain’s already fragile production industry.
