Channel 4 claims record-breaking year for finances, streaming in delayed report

Channel 4 has touted 2021 as a recording-breaking year in the annual report its CEO claimed was delayed because the government wanted to alter its content to make it look less financially sustainable.

Alex Mahon

Alex Mahon, CEO of the commercially funded UK public service broadcaster (PSB), said earlier this week that the Department of Culture, Media and Sport (DCMS) had disagreed with sections of its annual report, which has now been published in its original form after being independently audited.

It reveals C4 delivered its strongest ever financial performance in 2021, with corporate revenues topping £1bn (US$1.2bn) for the first time in its history, plus a record-breaking pre-tax surplus of £101m.

This breaks 2020’s previous record figure of £74m, which C4 said significantly increases the organisation’s net cash reserves to £272m and net assets to £556m, providing it with a platform for future strategic growth and long-term investment.

Meanwhile, its free, ad-supported streaming service All4 delivered a record-breaking performance with 1.5 billion views and is on track to deliver two billion by 2025, C4 said.

The youth-focused broadcaster believes it is now well placed to deliver a record £15m of investment in training and development across the UK over three years and its Future4 strategy, turning itself into a digital public service broadcaster “that retains its distinctive brand and public service impact.”

C4 also said it spent £671m on content in 2021, marking its third-highest content spend ever and a 29% increase on 2020. £492m was spent on C4-originated content, up +33% on 2020, of which 55% was made in the nations and regions of the UK, C4’s highest level ever and achieving its 50% target two years ahead of schedule.

By the end of 2021, C4 had around 400 roles based outside of London, across its bases in Leeds, Glasgow, Bristol and Manchester, and this number is expected to grow further in 2022.

C4 said that in 2022, it will continue to reinvest in the delivery of its remit and supporting independent producers across the UK and is on track to spend over £700m in content, the highest level in its 40-year history.

To ensure C4 authentically represents and reflects its audiences in the programmes it commissions, the broadcaster said it made strong progress on equitable representation in 2021.

Eighteen percent of its staff was ethnically diverse at the end of 2021, putting it on track to achieve its target of 20% by the end of 2022. C4 also saw the proportion of its ethnically diverse leaders increase from 9% in 2017 to 17% in 2021.

Nadine Dorries

The strong financials in the annual report mark the latest bump in the road for the ruling Conservative Party’s increasingly controversial attempt to sell off the pubcaster to the private sector on the basis that its funding model is not fit for purpose.

Culture secretary Nadine Dorries – who is set to be replaced in the coming months following prime minister Boris Johnson’s resignation last week – has been accused of pursuing a vendetta against the channel.

This has been attributed to its perceived left-leaning news and current affairs output, which is frequently critical of the government’s record. Dorries denies this and insists C4 needs to modernise to remain sustainable in the modern media landscape.

Mahon has frequently railed against the suggestion that C4’s model – which is ad-funded and not-for-profit, with all income invested back into commissions from the UK indie sector – is broken.

The C4 CEO said: “2021 was an outstanding year of creative excellence, exceptional digital growth and record-breaking financial performance that saw Channel 4 over-deliver on its remit and successfully continue its transformation into a digital-first PSB.

“These results demonstrate that Channel 4’s business model delivers dynamic growth, revenue diversification and long-term sustainability. Financially, Channel 4 is in the most robust health it has ever been and our results have laid the foundations for ongoing investment, financial success and stability.

“Channel 4 is a vital national institution and its remit is deeply embedded in everything we make, every day and on every platform. It is about showcasing things that people might not agree with and that challenge perceptions. It’s about celebrating the rich diversity not only of all our communities across the UK, but also their diversity of thought and opinion.”

C4 chairman Sir Ian Cheshire added: “Our exceptional financial performance demonstrates Channel 4’s long-term sustainability and, through its Future4 strategy, it will play a major and unique role in strengthening and levelling up the creative industries and creating new jobs and opportunities for young people across the UK.”