Channel 4 to commission like a streamer
JANUARY 29, 2024 13.29 EUROPE/LONDON BY JULIAN CLOVER


Credit: Richard Kendal/RTS

Channel 4 has an announced an ambitious five-year strategy to reshape the organisation into a digital-first public service streamer by 2030.

The strategy, known as Fast Forward, will see the commission of streaming friendly content, drama, high-end documentaries, comedy and reality, the closure of some smaller channels, and a series of redundancies.

The total headcount at the broadcaster would reduce by 18% – this would comprise around 200 redundancies and the closure of approximately 40 unfilled roles. Around 70% of roles closed would be out of legacy operations. Channel 4 says this would return headcount close to 2021 levels.

The broadcaster will move out of its London base in the next few years. With 600 roles based outside of London by the end of 2025, lower headcount in London overall, and a shift to flexible working.

Digital revenues already account for 27% of total revenues, compared to around 10% amongst other commercial broadcasters in the UK and abroad. The commercially funded public broadcaster has also expanded non-advertising revenue to represent 10% of total revenues and, in streaming, viewing time grew by 24% in 2023.

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.

“While getting ourselves into the right shape for the future is without doubt the right action to take, it does involve making difficult decisions. I am very sad that some of our excellent colleagues will lose their jobs because of the changes ahead. But the reality of the rapid downshift in the UK 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 organisation.”

Changes to the organisation of Channel 4’s Commissioning team will be designed to focus on the kind of content that drives streaming with “with fewer, stronger new titles that generate more scale and impact.” There will also be an increase in the amount of content distributed via YouTube.

There’s a target to double the amount of ad free subscriptions to the Channel 4 streaming service by 2030 and plans to build a double-digit million ecommerce business by 2030 to allow viewers to interact and purchase products through digital platforms.

There will be new FAST channels, but small linear channels “that no longer deliver revenues or public value at scale”, will be closed. In the immediate future this means the Box-branded channels. Others could follow “at the right time”.