Channel 4 has started to set out plans for in-house production following the removal of its publisher broadcaster restrictions.
Channel 4 says that its in-house production operation will be established as a separate company “with clear operational separation, reporting lines and management distinct from Channel 4 commissioning.”
The broadcaster says this will be accompanied by a “new dedicated complaints process for producers.” Ofcom will set new guidance on the commissioning policy which Channel 4 will report on annually and be “held accountable for by the regulator.”
Channel 4 says the production operation will be part of a “twin-track approach to IP ownership” accompanied by the launch of a Creative Investment Fund built on the existing Indie Growth Fund with Channel 4 starting to build majority stakes in indies and while “gradually” developing “focused” in-house production capabilities.
Its in-house production will focus on “returnable, scalable formats in factual entertainment, reality and entertainment genres with international potential.”
The new in-house production company “will be able to pitch to Channel 4 and other media platforms” with production anticipated to start in 2026 and this would be “gradual, build on the existing diversity in the market and with the intention to avoid any market shock.”
Channel 4’s existing qualifying independent production quota will rise from 25% to 35%. The quota increase will take effect in early 2026.
Channel 4 is now on the lookout for an “experienced creative lead” to launch the new division. The lead will report to Chief Operating Officer Jonathan Allan and will be “responsible for marrying creative success with commercial growth, developing and nurturing new formats to travel globally, while building a successful catalogue of IP.” The successful candidate will be tasked with initially setting up a development team and establishing key business functions and capabilities.
On the new Creative Investment Fund, Channel 4 said it will “focus on building majority stakes in Indies and content producers with strong commercial potential.” Unlike the Indie Growth Fund, instead of being an early-stage strategic partner for growth to the next level, the Fund will look to take “larger equity stakes in scalable companies, with a clear path to 100% ownership.”
Caroline Murphy will be stepping down as Head of the Indie Growth Fund and will leave the channel later this year. Tracy Forsyth, Creative Mentor to the Indie Growth Fund since 2019, will step down. Richard Fell is appointed as a new Creative Mentor, with a specialist focus on the scripted company investments.
The Creative Investment Fund will report to Channel 4’s Chief Operating Officer, but given Jonathan Allan’s responsibilities as Interim CEO, the relaunched fund will temporarily report to Martin Baker, Chief Commercial Affairs Officer & MD Paralympics.
Alex Mahon, CEO, and Jonathan Allan, COO and incoming Interim CEO, Channel 4, said: “The plans we are announcing today are the centrepiece of our strategy to diversify revenues and secure Channel 4’s long-term sustainability. 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.
“Indies will always be the lifeblood of Channel 4, and this new direction is an essential element of our strategy to underpin the long-term sustainability of Channel 4 for the benefit of the independent sector and British storytelling – where all roads lead back to investing in UK independent production.
“The potential for us to take majority stakes in independent production companies is hugely exciting for the industry – the Indie Growth Fund has played a central role in the scaling of numerous indies since its launch and this strategy heralds a new era and greater ambition for the fund.
“We would like to thank Caroline Murphy, who has played a pivotal role in the Indie Growth Fund’s strong and positive relationships across the sector, and we are especially grateful for her commitment to supporting indies through the challenges of lockdown and successfully exiting a number of our portfolio.
“We would also like to thank Tracy Forsyth for her passion, enthusiasm and commitment to helping Indies achieve their potential.
“Separately, we are pleased to be announcing the recruitment for the lead of our carefully considered entrance into the production sector. The move will also signal the increase in our existing qualifying independent production quota from 2026, underscoring our unique commitment to the sector.
“This new activity will also enable our commitment to growing Channel 4’s impact across the UK, providing investment capital, creating new production opportunities and opening further avenues for our 4Skills strategy.
“The developments – as part of our Fast Forward strategy – reaffirm Channel 4’s unique position in the UK production ecosystem and our unrivalled role as a champion of British creativity.”
Producers’ trade body, Pact reacted to Channel 4’s plans, saying “Pact is bitterly disappointed by Channel 4’s plans to wholly acquire companies as part of its plans for IP ownership and in-house production, which will directly impact market share in an already fragile market. Pact only saw the summary of the Channel 4 proposals late yesterday (Tuesday) and this was the first and only time that Channel 4 has discussed their plans with Pact.
“This move is in stark contrast to the ‘measured manner’ that Channel 4 CEO Alex Mahon set out when she appeared at the CMS Select Committee in April 2025 and goes against the concept of creating Channel 4’s own IP which is what in-house production is intended for.
“Channel 4’s intention is to create a new Content Investment Fund which will replace the Indie Growth Fund which helped many smaller indies with much needed capital to grow. In future these funds will now be directed to Channel 4’s own growth in production. The intention to create a new in-house development team, funded from savings and efficiencies elsewhere begs the questions that after years of diminishing programme budgets why they were unable to make these efficiencies before. The spin that this will mean more money for indies in future is not borne out by any explicit plans as to how any dividends from the new Channel 4 Production will find their way to the Channel 4 programme budget. The Channel 4 Board of Directors should publish specific proposals to back up this claim.
“Additionally, it is Channel 4’s intention to house both the new in-house team and the existing Channel 4 Corporation in the same building. This is unacceptable to Pact as there will be no separation between commissioners and in-house, immediately leaving independent producers at a disadvantage. The guidelines governing these relationships will not be fit for purpose when a commissioner meets a member of the development team in the Channel 4 canteen queue.”
Commenting on the Channel 4 announcement, Pact CEO John McVay OBE, said: “Having fought very hard against the privatisation of Channel 4, this is a bitter pill to swallow for the indie sector.”
Staff Reporter
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