Channel 4‘s deficit will return to being flat for 2024 following a record 2023 in which it hit £50M ($64M), Alex Mahon has revealed.
The Channel 4 annual report will reveal more in the coming months but the network’s boss told a Culture, Media and Sport Committee hearing today “we are pretty much on a flat deficit [for 2024] so that’s positive,” while she said revenues will be up around 1% for full-year 2024.
Channel 4 bosses had previously forecast a small deficit for 2024. Mahon was bullish when comparing Channel 4’s recent performance with rivals. She pointed to the BBC’s whopping £492M deficit for 2024/25, which has since been revised down, along with ITV revenues dropping 3%. Channel 4 spends 62% of its budget on shows, Mahon said, around 10% higher than rivals.
“But perhaps most importantly we grew our performance with audiences,” Mahon added, pointing to streaming views rising 15%, double that of Netflix, which has been attracting plaudits this month due to Adolescence. “To double the performance [of Netflix] in terms of viewing is excellent so I’m pleased we protected content investment and particularly in the nations and regions.”
The Channel 4 figures relate to an improved 2024 following an extremely difficult 2023 that saw a record deficit, a mini revolt from angry producers, content boss Ian Katz forego his bonus and subsequently a 250-staff layoff plan.
Channel 4 Productions
Mahon revealed Channel 4 will detail how it intends to set up a production arm over the next quarter, which will include “hiring some people.”
Channel 4 was given the power to produce its own shows for the first time when it avoided privatization in late 2022 and has since been slowly going about putting a plan in place, drafting in former Banijay UK boss Lucinda Hicks to advise and speaking at length with the production sector. It has had to tread carefully, given that Channel 4 commissions have proved the bedrock for small, third-party production companies based up and down the land.
“We need to hire some people and have some codes in place with [regulator] Ofcom,” added Mahon. “All these factors are in place but we need to begin to do it in partnership with the indie sector who have had some recovery from 2023 but there are still lots of challenges in the sector particularly for freelancers.”
Mahon also took questions
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