Despite plans of privatisation from the UK Conservative government which claims its actions will lead to the UK’s fourth largest broadcaster being a better business, Channel 4 has published its Annual Report 2021, showing its strongest-ever financial performance.
The highlights of the report showed that Channel 4’s corporate revenues topped £1 billion for the first time in its 40-year history, growing by 25% year-on-year to £1.2 billion. This is also a significant increase of 18% on 2019’s pre-pandemic revenues. A pre-tax surplus of £101 million broke 2020’s previous record figure of £74 million, increasing the organisation’s net cash reserves to £272 million and net assets to £556 million and, said the broadcaster, providing it with a platform for future strategic growth and long-term investment.
Nearly a fifth (19%) of total corporation revenues came from digital advertising, an increase of 40% year-on-year, demonstrating, insisted Channel 4, that its Future4 strategy to transform itself into a digital public service broadcaster that retained its distinctive brand and public service impact was on track to hit its 30% digital advertising revenue target by 2025. At the same time, the company’s share of digital ad market hit 35%, exceeding 28% share on linear. During the year, Channel 4’s All 4 on-demand streaming service delivered a record 21% growth in streaming views to more than 1.5 billion. It delivered 13% of total Channel 4 viewing.
Channel 4 spent £671 million on content in 2021, the broadcaster’s third-highest content spend ever and an increase on 2020, growing 29%, and pre-pandemic levels. £492 million was spent on originated content, up 33% compared with 2020. Just over half, 55%, of main channel content, amounting to £370 million, was made in the UK Nations and Regions, Channel 4’s highest level ever and achieving its 50% target two years ahead of schedule. In 2022, Channel 4 will continue to reinvest in the delivery of its remit and supporting independent producers across the UK. Channel 4 is on track to spend over £700m in content, the highest level in its 40-year history.
“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,” Channel 4 chief executive Alex Mahon commenting on the Annual Report 2021. “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.”
Nearly a fifth (19%) of total corporation revenues came from digital advertising, an increase of 40% year-on-year, demonstrating, insisted Channel 4, that its Future4 strategy to transform itself into a digital public service broadcaster that retained its distinctive brand and public service impact was on track to hit its 30% digital advertising revenue target by 2025. At the same time, the company’s share of digital ad market hit 35%, exceeding 28% share on linear. During the year, Channel 4’s All 4 on-demand streaming service delivered a record 21% growth in streaming views to more than 1.5 billion. It delivered 13% of total Channel 4 viewing.
Channel 4 spent £671 million on content in 2021, the broadcaster’s third-highest content spend ever and an increase on 2020, growing 29%, and pre-pandemic levels. £492 million was spent on originated content, up 33% compared with 2020. Just over half, 55%, of main channel content, amounting to £370 million, was made in the UK Nations and Regions, Channel 4’s highest level ever and achieving its 50% target two years ahead of schedule. In 2022, Channel 4 will continue to reinvest in the delivery of its remit and supporting independent producers across the UK. Channel 4 is on track to spend over £700m in content, the highest level in its 40-year history.
“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,” Channel 4 chief executive Alex Mahon commenting on the Annual Report 2021. “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.”
