Channel 4 crosses digital rubicon
From Business Plus:
Channel 4 has said it has reached a “crossover point” between linear and digital viewing.
The British State-owned, advertising-funded broadcaster saw digital advertising revenue increase 10% to £280m last year while linear advertising revenue declined 16% to £642m.
The company recently launched its ‘Fast Forward’ strategy with the aim of becoming a digital-first public service streamer by 2030.
Digital now accounts for 27% of Channel 4 revenue and is on track to make up 30% in 2024.
Overall, revenues declined 10% to £1.02bn, and CEO Alex Mahon said the broadcaster’s £52m deficit was the “intentional result of financing our transformation from linear to digital.”
“We chose to prioritise investment in content and recorded a significant deficit in 2023 as a result,” Mahon said, noting that surpluses and deficits are part of the “natural ebb and flow of Channel 4’s unique model”.
Channel 4 achieved 1.6bn streaming views in 2023, up 14% year-on-year, and expects to surpass 1.7bn this year.