Channel 4 Sets Out Digital-First Vision

Channel 4 has unveiled a five-year strategy to reshape the organization as it sets out to be a “digital-first public service streamer” by 2030.

The Fast Forward plan emphasizes the creation of “distinctive, streaming-friendly British content and social media,” new revenue streams and a restructure to make Channel 4 “leaner, simpler and nimbler.”

Since the rollout of the Future4 strategy in 2020, Channel 4 has increased its digital revenues to 27 percent of total revenues, as compared with 10 percent for other commercial broadcasters in the U.K. and elsewhere. The Fast Forward plan aims to up this proportion to 30 percent this year and above 50 percent by 2030.

Alex Mahon, CEO, said: “Channel 4 was designed to be ahead of the curve and has never stood still. The rate of change in our market is only speeding up. Our new strategy will accelerate our digital transformation—building on 2020’s Future4 strategy and our founding public service principles—so Channel 4 remains a trusted, disruptive and distinctive brand into the 2030s, offering brilliant shows that people love and that matter.

“We are genuinely excited about the future. Channel 4 means something to British people—we are trusted, we are a beacon for quality, we stand out for fresh and exciting ideas that matter and will be even more important in a crowded landscape of global content.”

Layoffs will be implemented as part of Channel 4’s new vision. Mahon noted: “The reality of the rapid downshift in the U.K. economy and advertising market demand that we must change structurally. As we shift our centre of gravity from linear to digital our proposals will focus cost reductions on legacy activity. In preparing for a new digital-first future, I hope we can make Channel 4 simpler—for staff and our suppliers—and create a more efficient, inclusive and high performing organization.”

The move to a digital-first commissioning strategy will emphasize drama, high-end documentaries, comedy and reality, with a focus on targeting younger viewers on platforms including YouTube. This will require “fewer, stronger new titles that generate more scale and impact.” Ramping up its YouTube content slate and social engagement will be prioritized through 4Studio. There will also be a commitment to upgrade its streaming technology and expand its distribution partnerships. For diversifying revenue streams, Channel 4 will explore the potential of intellectual property ownership; set out to double members of Channel 4+, the ad-free tier, by 2030; roll out an ecommerce business by 2030; and expand its FAST channel presence.

Headcount will be reduced by 18 percent, so about 200 redundancies and the closure of approximately 40 unfilled roles. This would return head count close to 2021 levels.