Channel 4’s results for 2023 (released on October 8, 2024) have confirmed the UK broadcaster’s leadership status in the global TV industry’s transition to digital.
For the year in question, digital revenues increased 10% to £280 million, accounting for 27% of C4’s total revenues – £1.02bn. C4 claims this is “far ahead of the market” and forecast digital revenues would reach 30% in 2024, a year ahead of target.
According to C4, its streaming minutes were up 23% in 2023 – buoyed by titles such as The Piano, The Couple Next Door, Russell Brand: In Plain Sight and Big Boys. The company also said that it “secured its place as the largest UK commercial broadcaster on social in 2023, with social views up 10% to 2.3bn in the UK and 6.8bn globally.”
Channel 4 CEO Alex Mahon (pictured) said 2023 was a year of “strong strategic progress as we grew the size of our digital business, delivering market-leading digital revenue diversification and record streaming viewing”. Several commentators have noted the size of C4’s deficit in 2023, which ballooned to £52m. Mahon said: “Our planned deficit and reduced cash were the intentional results of financing our transformation.”
Mahon said it would be full speed ahead for C4’s digital transformation: “We are at the point where digital viewing overtakes linear across the market. By committing even further to our digital transformation, we are keeping Channel 4 ahead of the curve and protecting its ability to continue delivering trusted and distinctive content.”
Drilling down into C4’s social strategy, the company said: “With 200 hours of programming distributed via YouTube on average each month, Channel 4 has seen strong performance into 2024. Channel 4 expects YouTube views to grow by 50% in 2024. Viewing of full episodes have already surged 300% year on year in 2024. The digital-first brand Channel 4.0 is also seeing excellent results with a 160% increase in UK views, including 122 million views for its series Minor Issues.”
C4 invested a total of £663 million in content during 2023. While it doesn’t break out the amount spent on digital-first series, it has increased its commitment in this area via original commissions for digital-first brand 4.0 and social platforms. At last count, 4.0 had 586,000 subscribers on YouTube. Aside from Minor Issues, series to have dropped include Baddest In The World, Worst In Class, and Tapped Out.
In a related development, Channel 4 announced the appointment of Rak Patel as its chief commercial officer. Patel, currently head of sales EMEA at Spotify, will join Channel 4 in January 2025, reporting to Mahon. In this newly created role, he will assume leadership of Channel 4 Sales, the commercial arm of Channel 4, with responsibility for driving the organisation’s advertising revenue. A key focus of the role is to accelerate the commercial elements of Channel 4’s Fast Forward strategy, maximising revenues as it transitions from linear to digital, while pursuing new partnerships and expanding into new areas of digital growth.
Patel said: “Channel 4 has pioneered an approach which empowers and embraces the culture around us. With a truly progressive Fast Forward strategy, embracing an agile and genuinely digital first public service streaming approach by 2030, the commercial opportunities for brands to share their stories is boundless.”
