Channel 4 is “cautious” about its expectations for 2024 as it moves to reduce the record losses of the past year and commit to spend around 63% of revenues on content.
The broadcaster recorded a £52m deficit in 2023, according to its annual report, which was published today.
Chief executive Alex Mahon stressed that the deficit escalation was expected as the broadcaster had committed to prioritise content investment, which stood at 65% of revenues in 2023.
This was also the period in which C4 sought to fund its transition to a digital-first public service broadcaster under its ‘Fast Forward’ strategy,
“We chose to prioritize investment in content and record a significant deficit in 2023 as a result,” Mahon said.
“We did it knowing that the single biggest contribution we can make to the financial health of the UK creative economy is what we spend on British IP and in that in such a tough year, that was more important than ever,” she said.
C4 ‘s content spend fell from 2022’s record of £713m to £663m in 2023. Original content accounted for £520m of this – the second-highest ever, and 9% down on 2022’s record £570m.
Digital revenues were up 10% and C4 forecasts further double-digit growth in 2024, offsetting the drop in linear revenues.
Mahon said C4 had hoped to spend more than £520m on original content last year, but that in common with other broadcasters, the advertising downturn had impacted on its plans.
She said that while the latter half of 2024 was providing challenging, the broadcaster would “keep investing through tough economic conditions to ensure continued creative success”.
C4's most-watched shows in 2023 included The Great British Bake-off, Russell Brand: In Plain Sight, Gogglebox, The Piano and Welsh drama The Light in the Hall [pictured].
