Channel 4 has reported a difficult year due to a decline in TV advertising, but the situation is starting to improve.
The broadcaster’s total revenue fell by 10.4% to £1.02 billion in 2023, with a 9.7% drop in advertising revenue, resulting in a record loss of £52 million. However, digital revenues increased by 10% to £280 million, accounting for 27% of total revenue, and are expected to reach 30% in 2024, a year ahead of schedule, as reported by City AM.
Popular shows like Married at First Sight, which became Channel 4’s most-streamed series in 2023 with nearly seven billion minutes of viewing time, contributed to overall viewing growth.
Channel 4’s chief executive, Alex Mahon, stated: “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 stabilisation of the advertising market.”
Mahon added: “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.”
Channel 4 has reported an unexpected decrease in content spending for 2023, attributed to a sluggish recovery in the advertising market following a challenging start to the year.
Advertising to stabilise
According to an Enders Analysis report, advertising revenue is projected to stabilise in 2024, providing a more predictable base for planning.
Analysts at Enders noted that recent market fluctuations have tested Channel 4’s adaptability and proactivity, more so than its competitors who are better shielded.
Enders also highlighted other challenges for Channel 4, including a measurable decline in the success of programming compared to pre-Covid-19 levels and a continued loss of broadcast viewing share among 16-34 year olds.
In a separate development, Ofcom published its response to Channel 4 Corporation’s Statement of Media Content Policy, which legally requires the broadcaster to prepare an annual statement detailing its plans for meeting content duties and reporting past performance.
The regulator acknowledged the difficult year experienced by Channel 4 but stated that the corporation performed well against its media content duties in 2023.
Ofcom commented: “But we now expect to see more detail on how these high-level strategic aims will be implemented, as well as specific targets for delivery.”
“Second, Channel 4 must ensure it is investing in commissioning and programming outside of London,” it added. Channel 4 has confirmed it is on track to achieve 52 per cent of spending outside London in 2024.
In January 2023, the UK government confirmed that Channel 4 would continue to be publicly owned. Ofcom is expected to soon release its decisions regarding the conditions for the broadcaster’s new licence.