Channel 4 boosts investment

Channel 4’s Annual Report for 2012 reveals the not-for-profit broadcaster increased investment in innovation for the third year running.

Under the leadership of Chief Executive, David Abraham spending on originated content reached a historic high of £434m, with a total content spend of £608m, up 3% on 2011.

The broadcaster notes that this continued investment in the schedule resulted in new titles accounting for 72% of Channel 4’s top 50 most-viewed programmes in 2012.

 “Channel 4 exists to deliver to its remit and did so in abundance across 2012, entering 2013 in a strong position both creatively and financially. The success of the Paralympics demonstrated the organisation at its very best and I am encouraged by the overall renewal of the schedule and the stability of the portfolio’s share of audience. Knowing that we aim to operate the business to break-even over the long term, the Board is comfortable with the planned deficit for 2012 and the strategy of continuing to deploy our cash surplus during 2013 to further invest in innovation. This is to the benefit of our audiences and creative partners.” says Channel 4 Chairman, Lord Burns.

Funds were used to invest in a range of innovations including Channel 4’s broadcast of the Paralympic Games, creative renewal, the launch of new channel 4Seven and the data strategy. For the second consecutive year Channel 4 sales house exceeded its target of £1bn and Channel 4’s total advertising and sponsorship revenues were flat year on year at £844m (2011: £845m). Total revenue was down slightly at £925m (2011: £941m), with an impressive 50% growth in non-linear revenues, up to £36m (2011: £24m). 4Rights operating profits increased to £23m (2011: £22m) and a £52m operating loss in 4Broadcast reflects the cross-funding model Channel 4 operates.

Chief Executive, David Abraham, added: “2012 was a memorable year for Channel 4 as we broadcast the Paralympic Games and invested more in UK content than in our 30-year history. Deploying part of our cash surplus, built up across 2010 and 2011, our strategy focused on investments in the organisation’s long-term future whilst ensuring that we maximised spend on UK content. We worked with more suppliers than ever before and broadcast a distinctive and diverse schedule, delivering to our remit on a daily basis. One in three of all 16-24 year olds in the UK are now registered with Channel 4 and our data strategy is evolving – eight new advertising products launched across 2012. We entered 2013 debt-free with cash reserves of £261m and will look to repeat this strategy of investing in innovation over the course of 2013.”

[Pictured: Channel 4 personality Davina McCall.]