Channel 4 has published its annual report that shows a deficit of £52m for 2023 after showing a £3m surplus the previous year.
The report shows that Channel 4 finished 2023 with revenues of £1.02bn, down -10% year- on-year after 2022’s £1.14 billion.
As a result, originated content spend dropped from 2022’s £570m to £520m but, says Channel 4, that “was still the second-highest in the channel’s history.” Total content spend in 2023 was £663 million, down from 2022’s £713 million.
The shift from the reliance on linear advertising to digital revenues grew with Digital advertising revenue growing by a further 10% on 2022. Digital now makes up 27% of Channel4’s total revenues, up from 22% last year.
Chief exec, Alex Mahon, said that the year “saw extremely challenging trading conditions across the industry. There was a significant market correction after the post-Covid boom in TV advertising, which translated into the deepest year-on-year declines since the 2008-2009 financial crisis.”
Mahon said that while the broadcaster’s spend decreased by 7%, “this was significantly less than the 10% fall in revenue. In total, 65% of our 2023 revenues went into content (2022: 63%) – a higher proportion than key commercial competitors – and while it increased our deficit, it was vital for us to support the independent production sector and to ensure a strong year of remit delivery for viewers.”
She said that 51% of Channel 4’s expenditure on first-run originated programmes on the main channel was sourced from the Nations and Regions. “I know what a difficult market it has been – and continues to be – for our independent production partners. We are focused on maximising our investment in the sector, in order to support independent producers and make brilliant programmes for viewers across the UK. Channel 4 is a disruptive and trusted force, driven by the extraordinary
talent and dedication of our team and partners.”
In 2024 Channel 4 initiated a redundancy consultation process to reduce costs. The proposals saw a reduction in headcount of 18%.
Chief exec, Alex Mahon accepted a bonus of £247k and the chief operating officer, Jonathan Allan, a bonus of £128k. Chief content officer Ian Katz declined to accept a bonus of more than £100k.
Jon Creamer
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