Channel 4 spending on programmes falls to historic low

Telegraph

21-05-2025

Channel 4 is spending less on making programmes than ever before as it ramps up efforts to bolster its finances.
The broadcaster, which has produced hits such as Big Boys and Married at First Sight UK, spent £643m on shows last year, including £489m on UK-made programmes.
This was down from £663m the previous year and is the smallest amount that Channel 4 has committed to programming since it was launched in 1982, when adjusted for inflation.
The drop-off demonstrates ongoing cost-cutting efforts at Channel 4, which is grappling with a decline in advertising and an exodus of younger viewers to streaming rivals and social media platforms.
The channel last year slashed around 200 jobs – the biggest round of cuts in its history – and announced plans to sell its London headquarters after crashing to a record deficit of £52m.
The savings helped the broadcaster, which is publicly owned but commercially funded, to narrow its deficit to £2m in 2024. Revenues were broadly flat after rising 1pc to just over £1bn.
Despite the cuts, Alex Mahon, the outgoing chief executive, saw her pay jump by almost 30pc to £1.3m last year.
Dawn Airey, interim chairman, defended the pay increase, saying: 'Last year was a challenging year, but they [management] did really well.'
She added: 'Every organisation has to evolve and that also, I'm afraid, does involve looking at the structure and what people are doing and where they're employed. And organisations do, alas, have to shed folks from time to time.'
Channel 4 is currently without a chairman after Sir Ian Cheshire stood down last month after three years in the role.
Ms Mahon has also announced that she will step down this summer, leaving the broadcaster rudderless at a critical time. Jonathan Allan, chief operating officer, will lead the company on an interim basis.
The programming cuts came as Channel 4 announced radical new plans to make its own TV shows.
The broadcaster has previously been blocked from making its own programmes, instead buying them from independent production companies.
However, this restriction was lifted following an unsuccessful attempt to privatise the broadcaster by the previous Conservative government.
The company is now searching for a TV executive to lead these in-house facilities, and production is expected to start next year.
Bosses said the production company will be focused on factual entertainment, reality and entertainment genres that have the potential to be sold to other broadcasters and streaming rivals.
It comes amid criticism of Channel 4's reality programming, which often revolves around sex and dating.
This includes its new show, Virgin Island, which The Telegraph dubbed 'painfully awkward for all involved' in a recent review.
Alongside in-house production, the broadcaster will start to acquire majority stakes in indie production companies through a new dedicated fund.
Channel 4 has previously angered small producers by slashing its budgets. However, it has insisted that its move into production will be gradual, while the company is increasing its quota of shows sourced from independent producers from 25pc to 35pc.
Ms Mahon described the production overhaul as 'one of the more important changes in our history'.
She added: 'We do welcome this new opportunity, but we also understand that we have to manage this transition quite carefully.'