Channel 4 Hails “Resilient” Performance Amid Market Volatility

Revenues at Channel 4 topped £1 billion ($1.3 billion) for a third consecutive year in 2023, with key gains in digital revenues, as the British broadcaster posted a record deficit amid increases in its content investments.

Sir Ian Cheshire, chair of Channel 4, noted, “Alex Mahon and her team have done a tremendous job navigating last year’s incredibly challenging advertising downturn to deliver resilient results and lay the foundations for Channel 4’s ambitious Fast Forward strategy and the success we are seeing in 2024. Channel 4’s unique public service remit and its sustainable commercial model creates immense cultural and economic benefit across the U.K. and this report, as well as the in-year update, demonstrates its continued long-term sustainability.”

Mahon, Channel 4’s chief executive, added: “2023 was another year of strong strategic progress as we grew the size of our digital business, delivering market-leading digital revenue diversification and record streaming viewing. Our planned deficit and reduced cash were the intentional results of financing our transformation from linear to digital. During this transition, we need to keep buying the different formats and genres people like to watch on linear and streaming. As a result of our investment in this transformation, we are already seeing the upside of prioritizing spend on content and digital innovation.

“In 2024, we have set out the next phase of Channel 4’s growth with a robust and ambitious strategy for the future and have seen a stabilization of the advertising market. We are also at the point where digital viewing overtakes linear across the market. By committing even further to our digital transformation with our Fast Forward strategy, we are keeping Channel 4 ahead of the curve and protecting its ability to continue delivering trusted and distinctive content to the British public.”

Revenues in 2023 hit £1.02 billion ($1.34 billion). Digital ad revenues rose 10 percent to £280 million ($366.6 million) and are on track to top £300 million ($392.8 million) this year. Channel 4 reported a deficit of £52 million ($68.1 million) as it prioritized content investments, which hit £663 million ($868 million). The broadcaster spend 65 percent of total revenues on content, with a similar portion allotted for 2025.