Channel 4 Delivers Record Financial Surplus

Amid a government review that could see it privatized, Channel 4 has reported a record financial surplus of £74 million ($104 million) for 2020 and significant streaming gains.

Investments in All 4 have paid off, Channel 4 said in its 2020 Annual Report, with streaming growth of 26 percent to reach 1.25 billion views. Linear share was up 3 percent on the main channel. On the revenues front, digital ad revenues grew by 11 percent and now account for 17 percent of total revenues.

For 2021, Channel 4 projects total revenues will exceed £1 billion for the first time ever, up from £934 million ($1.3 billion) in 2020. As a result, the broadcaster is upping its planned content spend for this year and next by £40 million ($56 million). The group spent £522 million on content last year ($731 million).

“Channel 4 is a uniquely British idea,” said CEO Alex Mahon. “We were created as a partner for others—taking money invested by advertisers and plowing it into new ideas, new talent and social good for the benefit of our owners, the British people. As our results show, we are in excellent health. Our viewing share and streaming is up significantly, we have grown our digital revenues ahead of the market, and with a record financial surplus and a clear digital transformation strategy, we are well-positioned to continue delivering impact for U.K. audiences, particularly younger viewers, well into the future.

“We are successfully evolving our model for a new era where we are not just fueling the engine of our world-leading production sector but helping spread its impact outside of London and into different parts of the U.K. As we emerge from the impact of one of the worst crises of our lifetime, I believe we are stronger and more able to deliver our purpose than ever.”

Channel 4 Chair Charles Gurassa also underlined Channel 4’s health, noting, “Against the background of unprecedented uncertainty and the volatility resulting from the Covid-19 pandemic in 2020, Channel 4 has delivered a record financial surplus together with increasing audiences and share and impressive growth in its on-demand digital audiences. Importantly, the year showed Channel 4 at its best as we entertained, comforted and informed millions across the U.K. throughout this unprecedented crisis. In a vitally important year for the future of public-service broadcasting as both Government and Ofcom undertake reviews of the sector, these results underline the strength, popularity and sustainability of Channel 4 and the important cultural, social and economic impact that the organization delivers for all the U.K.”