Channel 4 Annual Report 2023: Resilient performance in volatile market sets path to digital growth, creative success and long-term sustainability

8 October 2024

Channel 4 today published its annual report for 2023 – later in the year than usual due to the General Election – and provided in-year update on 2024 progress. 

Performance highlights:  
 

• 2023 revenues topped £1 billion for the third consecutive year, representing a resilient performance in a year of significant advertising downturn  

• Digital revenues increased 10% to £280 million, accounting for 27% of total revenues – far ahead of the market and forecast to reach 30% in 2024, a year ahead of target  

• Non-advertising revenue at £101 million (10%) 

• Total investment in content (£663 million) accounted for 65% of revenues  

• Deficit of £52 million planned as part of strategy to maintain investment in original content (at second-highest level £520 million in 2023) and fund digital transformation 

• Planned deficit year followed record surpluses in 2020 and 2021 

• Streaming minutes up 23% in 2023 – buoyed by titles such as The Piano, The Couple Next Door, Russell Brand: In Plain Sight and Big Boys – while 2024 data shows 25% increase year-on-year, outpacing the biggest streaming services  

• Channel 4 is the only major commercial broadcaster to grow overall viewing in 2024 to date, fuelled by new and returning hits including To Catch a Copper, Married at First Sight, The Gathering and The Push, alongside groundbreaking coverage of the General Election and Paralympic Games  

Sir Ian Cheshire, Chair of Channel 4, said: “Alex Mahon and her team have done a tremendous job navigating last year’s incredibly challenging advertising downturn to deliver resilient results and lay the foundations for Channel 4’s ambitious Fast Forward strategy and the success we are seeing in 2024.  

 

“Channel 4’s unique public service remit and its sustainable commercial model creates immense cultural and economic benefit across the UK and this report, as well as the in-year update, demonstrates its continued long-term sustainability.”  

 

Alex Mahon, Chief Executive of Channel 4, said: “2023 was another year of strong strategic progress as we grew the size of our digital business, delivering market-leading digital revenue diversification and record streaming viewing. Our planned deficit and reduced cash were the intentional results of financing our transformation from linear to digital. During this transition, we need to keep buying the different formats and genres people like to watch on linear and streaming. As a result of our investment in this transformation, we are already seeing the upside of prioritising spend on content and digital innovation.  

 

“In 2024, we have set out the next phase of Channel 4’s growth with a robust and ambitious strategy for the future and have seen a stabilisation of the advertising market. We are also at the point where digital viewing overtakes linear across the market. By committing even further to our digital transformation with our Fast Forward strategy, we are keeping Channel 4 ahead of the curve and protecting its ability to continue delivering trusted and distinctive content to the British public.”  

 

Financial performance 

In 2023, Channel 4 achieved total revenues of £1.02 billion, while navigating a difficult year of steep TV advertising market declines.  

 

Digital advertising revenues grew by 10% in 2023 to £280 million, making up 27% of Channel 4’s total revenues (2022: 22%). This is far ahead of other UK and international commercial broadcasters, who averaged around 10% in 2023. Digital revenues for 2024 are forecast to exceed £300 million and the business is set to hit its 2025 target of 30% digital revenues one year early.   

 

With £101 million of non-advertising revenue, Channel 4 has again met its 2025 target of 10% of total revenues. It is on track to maintain this in 2024.  

 

Channel 4 planned for a deficit year in 2023, following record surpluses in 2020 and 2021. It recorded a deficit of £52 million and net cash reserves of £96 million, as part of its strategy to maintain investment in original content and digital transformation. It is expecting a smaller deficit in 2024. 

 

Content investment  

Channel 4 prioritised content investment in 2023, spending £663 million in total, which enabled it to deliver another strong year onscreen. Against a tough cyclical TV advertising downturn, it continued to support UK independent production and the creative economy, investing £520 million in original content. 

 

65% of total revenues were spent on content, a higher level than key commercial competitors. A similar proportion will be invested in 2024.  

 

51% of its content spend was outside London, surpassing Channel 4’s voluntary 50% target. Channel 4 is on track to reach 52% of spending outside London in 2024.  

 

Channel 4 content earned a record 126 TV award wins across all genres in 2023.  

 

The Piano was the top new series of the year and the best-rating new format since 2017, reaching 8.8 million viewers. While Big Boys was the cut through comedy of the year, Tempting Fortune was the strongest reality launch and Late Night Lycett was its biggest 10pm format of the year for young people.  

 

Married at First Sight was Channel 4’s most-streamed series in 2023, racking up a combined 6.9 billion minutes across the UK and Australian series, and continues to grow in 2024.  

 

Russell Brand: In Plain Sight was the top new title of 2023 and the most-watched Dispatches on record, Partygate reached 3.5 million people and was among the most-streamed episodes of the year, and Banged Up was the most-watched new series for young people. Channel 4 also had its biggest-ever drama launch with The Couple Next Door.  

  

In 2024, Channel 4 continues to nurture long-running hits like The Great British Bake Off and Taskmaster, while finding success with formats like The Piano and The Jury. It has also found mass appeal with noisy, gritty premium factual shows like To Catch a Copper, which reached over 6.2 million viewers, Merseyside Detectives, the most-viewed show on Channel 4 streaming this August, and The Push, which had the second-highest audience for a new 9pm unscripted series.  

  

Channel 4’s programming has also had huge impact during significant national moments with its groundbreaking coverage of the UK General Election and its innovative coverage of the Paris 2024 Paralympic Games, which reached 20 million people across the UK.  

 

Channel 4’s unrivalled news coverage and documentary output have made it the go-to place for all the biggest stories across both 2023 and 2024, and one of the most trusted news sources in the UK. This has been recognised most recently with an International Emmy for News, as well as BAFTA and RTS awards earlier in 2024.  

  

Film4 also enjoyed a successful year in 2023, picking up more awards than in any year for 15 years. It started 2024 with an extraordinary awards season that included a record-breaking nine BAFTA wins and six Oscars.   

 

Streaming performance  

Channel 4 achieved standout streaming performance with streaming views reaching a record 1.6 billion in 2023, up 14% from 2022, and is set to surpass 1.7 billion in 2024, demonstrating its success engaging young audiences and driving digital growth.  

 

Streaming minutes were also up 23% in 2023, to 56 billion, and made up 15% of total Channel 4 viewing, up from 12% in 2022. This number is significantly higher than other UK commercial public service broadcasters and has continued to grow strongly in 2024.  

 

Channel 4’s streaming performance from January to August 2024 was up by 25%, putting it ahead of all the biggest streaming platforms in the UK. It is the only major UK commercial broadcaster to have grown overall viewing minutes across streaming and linear.   

  

Channel 4 secured its place as the largest UK commercial broadcaster on social in 2023, with social views up 10% to 2.3 billion in the UK and 6.8 billion globally.  

 

With 200 hours of programming distributed via YouTube on average each month, Channel 4 has seen strong performance into 2024. Channel 4 expects YouTube views to grow by 50% in 2024. Viewing of full episodes have already surged 300% year on year in 2024. The digital-first brand Channel 4.0 is also seeing excellent results with a 160% increase in UK views, including 122 million views for its series Minor Issues.  

  

Ofcom commends Channel 4’s distinctive programming and its strong streaming performance  
 

Channel 4 delivered high levels of public service remit and audience value:  

 

“Audiences continue to rate Channel 4 highly for delivering programming that demonstrates innovation, experimentation, creativity and distinctiveness.”  

 

“Channel 4 News continues to distinguish itself in a crowded news landscape by delivering award-winning journalism for audiences in the UK and globally”.  

 

Channel 4 continues to innovate:  

 

“Channel 4’s performance this year demonstrates that its digital-first strategy is bearing fruit, and we have seen innovations in content and content delivery. In particular we are pleased to note the performance of Channel 4 streaming, which reported a record year of viewing in 2023”.