C4 privatisation threat recedes

C4 boss David Abraham

The UK’s Channel 4 has revealed a rise in annual revenues and peaktime viewing amid reports that the government is backing down on plans to privatise the network.

C4’s annual report revealed today that its flagship network’s viewing share was up 1% with an 8% rise during peaktime, between 19.00 and 23.00. The network also secured more viewers aged 16-34 – up 2% and 7% during peaktime.

Revenue was up to a record £979m (US$1.4bn), from £938m the year before, leaving a £26m surplus. Digital revenues rose by 30% to £82m.

C4 added that it had spent £629m on content, with a record £455m going on TV, film and digital. Hits included Humans, a sci-fi drama coproduced with AMC in the US, and unscripted formats Hunted and SAS: Who Dares Wins.

David Abraham, C4’s CEO, said the broadcaster “had a record impact on audiences and the UK’s creative sector in 2015 with our investment in original content, our commercial revenues and, critically, the delivery of our public service remit, all at their highest ever levels.

“We expect this impact and growth to continue in 2016 and, as a wide range of independent experts have concluded, our focus on both creative and commercial innovation has positioned us very strongly for the future.”

More good news for C4 also emerged as reports suggest the UK government is rowing back on plans to privatise the pubcaster.

Talk of the channel’s sale emerged last September when a government official was photographed carrying a Department for Culture, Media and Sport brief that outlined options for the channel’s privatisation.

Culture and media secretary John Whittingdale has previously said that no decision would be made until after discussions over the future of the BBC’s charter renewal this year.

However, The Telegraph newspaper reported today that an intervention from Downing Street has seen the plans shelved.

While privatisation is now reportedly off the agenda, reforms could include C4 being forced to sell a minority stake and to provide a dividend to the UK treasury. The broadcaster could also be relocated away from London.

A report last week claimed privatising C4 would have an “overwhelmingly negative” impact on the country’s creative sector and the move has been vehemently opposed by C4 and Abraham.