Channel 4 is a public service broadcaster in the UK. It was established in 1980. Channel 4 was created as a “publisher-broadcaster,” which means that it doesn’t have any in-house production, but instead commissions all the content that it airs from production companies in the UK.
Media assets
Television: Channel 4, All4, E4, More4, Film4, 4Seven, 4Music
State Media Matrix Typology: Independent State-Managed (ISM)
Ownership and governance
Channel 4 was originally created by the Broadcasting Act 1980 as an entity run by the Independent Broadcasting Authority (the then broadcasting regulatory body that now is not in operation anymore). In 1990, the Channel Four Television Corporation was subsequently established under a newly adopted Broadcasting Act 1990.
It is a statutory corporation owned by UK Government Investments, a company owned by the UK Government. Channel 4’s board is appointed by Ofcom, the British media regulator, in consultation with the Secretary of State for Digital, Culture, Media and Sport.
In spring 2022, the British government announced plans to privatize Channel 4, drawing sharp criticism from independent media observers and journalists who fear that the move would lead to lower quality in Channel 4’s programming. The government argued that the channel would be in a better position to survive economically if it were run by a privately owned enterprise.
The channel released in May 2022 its own proposal for privatization, which among other things, includes retaining its current model, under which Channel 4 doesn’t produce its own content, instead hiring independent producers to make its programmes.
In January 2023, however, the culture secretary, Michelle Donelan, recommended the channel remain under public ownership. It seems that for now the channel’s privatization is off the table.
Source of funding and budget
Channel 4 receives no public or state funding, covering its operations entirely through advertising revenues (and other forms of commercial income). Channel 4 reinvests all profits back into programs.
In 2020, Channel 4 generated sales revenues of GBP 934m (US$ 1.28bn), according to an annual report. In 2022, the company recorded revenues of GBP 1.14bn (US$ 1.34bn), an increase from over GBP 1bn in the previous year, according to financial reports released by the company.
Editorial independence
There are no rules imposed by the government on Channel 4 that influence in any way its content production to favor the authorities. The channel is known for its quality, innovative and independently produced content.
Channel 4 has a series of statutes that guide its strategy in commissioning and acquiring content. In line with its public service mission, Channel 4 has implemented a number of statutes that aim to ensure diversity in its programming.
The role of continuous assessment and oversight of the programming commissioned and acquired by Channel 4 is played by the broadcaster’s Board, which is appointed by the politically independent regulator Ofcom.
September 2023