Alex Mahon, led by CEO Alex Mahon, recently said she will resign for eight years this summer, and he will enter internal production amid ocean changes and will also begin seeking to buy production companies with "strong commercial potential" as the development of his acquisition strategy.

Over its 40-year history, broadcasters have focused on green content from independent production companies, but the UK Media Act 2024 has lifted restrictions in 2024 and now opens the door for Channel 4 to create its own content internally.

The news comes as Channel 4 reported a full-year 2024 deficit, after £2 million ($2.7 million), or £12 million ($16.1 million), including restructuring costs, with record annual losses exceeding £52 million in losses due to “extended” investment in advertising.

In a press conference Wednesday, Chief Content Officer Ian Katz, Coo Jonathan Allan, CFO Lucy Thomas and interim chairman Dawn Airey discussed the new production strategy and business status.

Channel 4 said it will follow a new “dual-track approach” to invest in intellectual property (IP) ownership, “incorporating phased relocation into internal production and launching new ideas
Investment funds “focus on buying or building a majority stake in independent production banners and “content producers with strong commercial potential.”

The strategy is the evolution of Channel 4's current independent growth fund, which has been investing in launching Indian Islands such as Yeti, Five Mile Movies and Twist since 2014. Now, broadcasters will no longer be an early-stage strategic partner at a new level, but instead seek a pathway to gain greater equity in a scalable company and have 100% ownership. ”

The broadcaster did not elaborate on the size of the new investment fund, and executives only emphasized that Channel 4 is much smaller than those like ITV Studios or BBC Studios and will immediately undergo "no earthquake changes."

Channel 4 also promises to increase the quota for independent production from 25% to 35%.

“In an increasingly competitive world, this diversification of revenue is an important step in supporting Channel 4’s role as a sustainable champion for independent production and will invest in long-term content in a variety of shapes and sizes and in independent times across UK segments,” Channel 4.

Its strategy to develop in-house production capacity is designed to “create returnable, scalable formats of factual entertainment, reality and entertainment types with international potential, allowing Channel 4 to benefit from global revenue streams to drive its investments in the UK.”

Channel 4's internal production operations will be established as a separate entity, "with a clear separation of operations, reported lines and management are different from Channel 4's commissioning to ensure fair competition for commissions and will be accompanied by a new dedicated complaint process for producers, adding that it will "capable to Channel 4 and other media platforms." In-house production is expected to begin in 2026.

Channel 4 is looking for experienced creativity to launch new divisions and report to Allen. The director “will be responsible for bringing creative success with business growth, developing and nurturing new formats to travel around the world while building a successful IP catalog,” it said.

"This is indeed a huge change in our potential business model, and we think it is crucial for Channel 4's long-term sustainability," Allen told the media on Wednesday. He also vowed: "This move will be managed very carefully, and its initial scale will not disrupt the market nor will it change the way we commission it." He noted that Channel 4 did not focus on the for-profit model and its polymer spending ratio, and he concluded: "A stronger, safer Channel 4 means a stronger production area."

Channel 4's revenue climbed to £1 billion ($1.34 billion) for the fourth consecutive year. Channel 4's total content investment is £643 million (US$865 million), accounting for 62% of revenue, compared with 65% in 2023. The broadcaster stressed that this is a "higher proportion
Better than competitors. ”

Thomas pointed out at a press conference on Wednesday that 2024 was "another turbulent year for the UK economy and advertising markets, affected by global uncertainty, persistent inflation and high interest rates", and Tamas pointed out at a press conference on Wednesday that the macroeconomic outlook remains "uncertain". She noted that “management costs, difficult but necessary options, including simplifying our operations”, while a disciplined approach allows broadcasters to still provide “strong financial and operational performance”, also expressing confidence in the future prospects.

The charts shown by Channel 4 Management on Wednesday highlighted the broadcasters’ formerly touted as “accelerating digital success.” The streaming minutes reached 63.4 billion in the latest year, compared with 55.9 billion in 2023. Streaming views ranged from 1.61.6 billion to 1.8 billion, up from previous forecasts of 1.7 billion.

Channel 4 increased from 15% to 18% from streaming viewing, and digital advertising revenue jumped from 27% in 2023 to 30% in 2024. The BBC reiterated its target of 50% by 2030 on Wednesday.

Last year, Channel 4 launched a five-year strategy titled Fast Forward to reshape itself and “accelerate its transformation into agile, digitally-first public service streaming in 2030.” It recommended reducing the number of employees by 18% – including about 200 layoffs and about 40 unfilled roles shutdowns, and said in late January: “About 70% of role shutdowns will go beyond traditional action.” It added: “This will return employees close to the 2021 level, but the organization is in the right position to achieve further digital growth and bring public service media into the future.”

Allan touted Wednesday: “We have made great strides in reshaping Channel 4 as a future-oriented public service streaming. Our streaming growth and digital innovation outperform the market in the market with disciplined financial management and bold content investment.”

Mahon, who will leave the broadcaster in July, has temporarily played the role, said on Wednesday: “In 2024, Channel 4 demonstrates that our public service model can evolve and thrive in a changing world. Fast forwards are delivering creatively, digitally, digitally and commercially.”

She concluded: “The purpose of Channel 4 has never been more important and I believe the organization will continue to undermine, challenge and promote national dialogue in the coming years.”

At a press conference, Ma Hong also stressed: “The future of public service media is under pressure from global players.”

Asked about the tariff threats from US President Donald Trump to foreign films, she said: "Tariffs are a concern for the film industry. On the 4th aspect of the film, we have the largest funding for British films... so we don't want tariffs to subvert production. But obviously, the film industry is on standby."

Katz touted 2024's 4 movies at a press conference Wednesday Poor thing,,,,, Areas of interest,,,,, Mom Earthand How to make love. He shared that the company was “excited by our upcoming slate”, such as Oliver Hermanus’ The history of soundStarring Paul Mescal and Josh O'Connor, who debuted Wednesday night at the Cannes Film Festival.

On theatrical side, Katz believes that “we are more powerful than ever to British creativity”, touting upcoming dramas like Russell T. Davis Tips toesDaisy Haggard Mayaand Jack Thorne fall. Overall, the upcoming programming is “I think it is the most powerful drama in Channel 4’s history.”