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Channel 4 has unveiled plans to move into in-house production and launch a new Creative Investment Fund, marking the end of its 42-year history as solely a publisher-broadcaster.
The U.K. public service broadcaster simultaneously released its 2024 annual report showing record streaming performance while still facing financial challenges, though its deficit has significantly improved as its Fast Forward strategy gains momentum.
The twin-track approach to intellectual property (IP) ownership comes after the recent Media Act removed the publisher-broadcaster restriction that had previously prevented Channel 4 from producing its own shows.
“The plans we are announcing today are the centerpiece of our strategy to diversify revenues and secure Channel 4’s long-term sustainability,” said Alex Mahon, CEO, and Jonathan Allan, COO and incoming interim CEO, in a joint statement. “The creation of in-house production and our investment in indie stakes will allow us to generate new income streams that are not wholly reliant on the advertising market.”
Starting in 2026, Channel 4 will develop in-house production capabilities focused on factual entertainment, reality and entertainment genres with international potential. The broadcaster is actively recruiting an experienced creative lead for this new division, which will operate as a separate company with “clear operational separation” from Channel 4’s commissioning team.
To reassure the independent production sector — long the lifeblood of Channel 4’s output — the broadcaster will increase its qualifying independent production quota from 25% to 35%, the largest commitment of any U.K. broadcaster. The channel has also published new Commissioning Guidelines to ensure a “level playing field” for producers.
Channel 4’s existing Indie Growth Fund will evolve into the new Creative Investment Fund, shifting from its previous approach of taking minority stakes in start-up and scale-up indies to now building majority stakes with “a clear path to 100% ownership.”
Caroline Murphy, who has led the Indie Growth Fund for six years, will step down later this year. Under her leadership, the fund expanded its investment in diverse-owned and Nations & Regions-based indies, with the majority delivering strong returns, including successful sales of Voltage to BBC Studios and Eagle Eye to ITV Studios.
The broadcaster’s annual report revealed total revenues of £1.04 billion ($1.39 billion) in 2024, marking the fourth consecutive year above the £1 billion mark. Digital advertising hit £306 million ($410 million), representing 30% of total revenue — double the market average and a year ahead of its 2025 target. Non-linear revenues now account for 39% of Channel 4’s total.
Despite the revenue success, Channel 4 still reported a pre-tax deficit, though it was significantly reduced by £50 million ($67 million) to just £2 million ($2.6 million) before exceptional items. The broadcaster closed the year with £111 million ($149 million) in cash and no debt drawn.
The broadcaster’s content investment remained high at £643 million ($862 million), including £489 million ($656 million) in originated U.K. programming — representing 62% of revenue, a higher proportion than competitors. Investment in Nations and Regions content increased 4% to £200 million ($268 million).
Streaming performance outpaced the market with views up 13% to a record 1.8 billion, now accounting for 18% of total viewing. Social platforms also showed significant growth, with U.K. YouTube views rising 26% to 340 million.
“In 2024, Channel 4 showed how powerfully our public service model can evolve and thrive in a changing world,” said Mahon, who will step down in July after leading the broadcaster through its digital transformation. “Fast Forward is delivering — creatively, digitally, and commercially. I’m incredibly proud of what we are achieving.”
Allan, who will take over as interim CEO, added: “We’ve made great strides in reshaping Channel 4 into a future-facing public service streamer. Our streaming growth and digital innovation are outpacing the market, with disciplined financial management and bold content investment. The momentum is real, and I’m excited for the future.”
The creative and financial shifts come as the U.K. broadcaster celebrates winning 106 major awards in 2024, including BAFTAs and International Emmys, while its Film4 productions “Poor Things” and “The Zone of Interest” collectively won six Oscars.
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