Channel 4 unveils plans to enter internal production and launch a new creative investment fund, marking the end of its 42-year history with publisher Broadcaster.

Public Service Broadcasting Corporation of Britain also released its annual report for 2024, showing record stream performance while still facing financial challenges, although its deficit has improved significantly as its fast-forward strategy grows.

Twin-Track method (IP) ownership of intellectual property (IP) rights after the recent Media Act deleted the Media Act, which previously blocked Channel 4 from making its own shows, removed the Media Act.

“The plans we announce today are at the heart of our strategy to diversify our strategies and ensure long-term sustainability of Channel 4,” CEO Alex Mahon and Incoming Intrim Interim CEO said in a joint statement. “Creating internal production and our investment in independent shares will enable us to generate new revenue streams that are not entirely dependent on the advertising market.”

Starting in 2026, Channel 4 will develop internal production capacity, focusing on factual entertainment, reality and entertainment types with international potential. Broadcasters are actively recruiting the experienced creativity of this new division, which will serve as an independent company to conduct a “clear operational separation” from Channel 4’s commissioning team.

To ensure independent production sectors (long-term lifeblood of Channel 4 output), the broadcaster will increase its qualified independent production quota from 25% to 35%, the biggest commitment of any BBC. The channel also released new debugging guidelines to ensure a "level competitive environment" for producers.

Channel 4's existing independent growth fund will evolve into a new creative investment fund, from its previous approach to launching and expanding minority stakes in India to now establishing a majority stake with a “clear pathway to own 100% ownership”.

Caroline Murphy, who has led the Independent Growth Fund for six years, will step down later this year. Under her leadership, the fund expanded its investment in independent India based on countries and regions, with most providing huge returns, including the successful sale of voltage to BBC Studios and Eagle Eye to ITV Studios.

The broadcaster's annual report shows that total revenue in 2024 was £1.04 billion ($1.39 billion), which is the fourth consecutive year above the £1 billion mark. Digital advertising hit £306 million (US$410 million), accounting for 30% of total revenue, twice the market average, and the year ahead of its 2025 target. Nonlinear revenue now accounts for 39% of the total channel 4.

Despite the success of revenue, Channel 4 still reported a pre-tax deficit, although the tax rate was significantly reduced by £50 million ($67 million) before special items and only £2 million ($2.6 million). The broadcaster ended with £111 million ($149 million) in cash and did not collect debts.

Broadcasters' content investment remains high, at £643 million ($862 million), including £489 million ($656 million) of the UK plan, accounting for 62% of revenue, higher than competitors. Investment in national and regional content grew 4% to £200 million (USD 268 million).

Streaming performance surpassed the market, with views rising 13% to a record 1.8 billion, and now accounting for 18% of total views. Social platforms also showed significant growth, with UK YouTube's view rising 26% to 340 million.

“In 2024, Channel 4 demonstrates that our public service model can grow and thrive in a changing world,” said Ma Hong, who will resign in July, who will lead broadcasters for digital transformation in July. “Fast forward is delivered creatively, digitally and commercially. I’m very proud of what we have achieved.”

Allan, who will take over as interim CEO, added: “We have made great strides in reshaping Channel 4 as a future-oriented public service streaming. Our streaming growth and digital innovations outperform the market and have disciplined financial management and bold content investments. The momentum is real and I’m excited about the future.”

This creativity and financial shift is winning 106 major awards in 2024, including BAFTA and International Emmy Awards, while its Film4 Productions "Pity Stuff" and "Area of ​​Interest" have won six Oscars together, the creativity and financial shift is in winning 106 major awards.