Britain’s Creative Greenhouse
Key facts about Channel 4
Channel Four Television Corporation How do you drive growth, create jobs 03 and support small businesses?
And sustain a pipeline of innovation to a world-class sector?
And inspire a nation?
AT NO COST TO THE BRITISH TAXPAYER? 04 05
Reach for the remote 06 PSB Ecology Channel 4 in a nutshell 07
The UK broadcasting ecology is the result of enlightened intervention Our twin goals are to fulfil our remit and to be commercially self-sufficient by politicians and regulators. It’s a carefully balanced mix of different organisations, with different missions, business models and governance structures that has made UK broadcasting a worldwide success. Statutory public Social enterprise service remit model
e innovative & distinctive Commercially funded + + by advertising Stimulate public debate multi-channel on contemporary issues Not for profit: all surplus goes back into content Reflect cultural Publicly-owned / non-pro t Privately owned / for profit diversity of UK Profit making genres Champion alternative such as Factual subsidise points of view loss making ones like News Publicly funded Commercially-funded Inspire change in people’s lives Public service Non public service Nurture new and existing talent
Publisher State-owned broadcaster public service broadcaster
All UK programmes Established as a statutory commissioned from UK corporation production companies, mainly SMEs, across ritain Portfolio of channels Channel 4 E4 Channel More4 Channel Film4 Channel (no in house production and digital services and productions unlike C, ITV and Sky Regulated by Ofcom Subject to content HD quotas and other requirements +1 4Seven Channel 4Music Channel All4.com Channels 10 11
BROADCASTING’S CREATIVE GREENHOUSE
Channel 4 drives growth and creates jobs in the UK’s creative industries, supporting hundreds of small businesses 12 WE’RE A GREENHOUSE FOR We make a huge contribution 13 NEW CREATIVE AND DIGITAL to the UK’s economy IDEAS OF SIGNIFICANT ECONOMIC IMPORTANCE 850 employees Our overall contribution to the UK’s creative economy is disproportionate to our size. We grow small businesses across the whole of the UK and our formats are successful around the world.
10 people
generate support
1.1 billion
contribution to G P p.a. 19,000 jobs per annum across the UK
CREATIVE GREENHOUSE 14 We grow businesses We support the independent 15 production sector 10 430 Spend on UK independent production companies by PSB channels billion million 36% 22% 22% Total portfolio spend on Our total portfolio spend with UK Channel 4 content since launch production companies p.a.
The number of independent TV production companies we work with Channel 4 232 143 12% 134 108 102 8%
We work with We have set up a 33 £20m production Growth PercentageChannel 4 proportion spend on ofindies spend with on aindies turnover with ofa turnover£25m or of less £25m or less companies Fund across TV, 2011 8% digital and film to invest in small and medium sized UK independents to 2012 20% support the sector 2013 28%
CREATIVE GREENHOUSE 16 Across the UK And around the world 17
Channel 4 portfolio spend with first-run programmes outside London Gogglebox is exported to over 25 territories, from the USA to Mongolia
Ireland Norway Finland
Latvia Canada Ukraine elgium Mongolia USA France Poland South Korea Spain Israel China Holland Italy Germany Slovenia
16m Scotland Australia
62m “Channel 4 is the single richest source of IP in the world for TV” – Simon Andreae, Fox Broadcasting Northern Ireland North of England 1m
11m Over 1/4 Midlands of the British programme formats in the Top 100 in Wales 4m Europe were comissioned by 56m Channel 4 in 2013 alone
South of England 7m Multi region These formats grossed over
On our main channel, over 50% of programming hours are commissioned 0.5 billion from outside London and we are increasing our spend in the Nations in estimated European (Wales, Scotland, and Northern Ireland). broadcasting revenue
CREATIVE GREENHOUSE 18 19
PSB’s CHALLENGER BRAND
Channel 4 creates innovative and alternative content which is distributed for free and admired globally 20 WE’RE A CHALLENGER We prioritise investment in 21 BRAND IN BROADCASTING, innovative British programmes Two thirds of income spent on content ENCOURAGING HIGH 2/3 of income spent on content STANDARDS ACROSS Content spend as a proportion of income THE INDUSTRY 66% 58% Our investment in UK-originated content is rising, set against declining 52% investments in PSB elsewhere. Our existence is critical to providing plurality in genres that deliver public good, such as News & Current Affairs. 77% of peak-time hours are UK-originated content vs. 70% Ofcom quota requirement We’re at the forefront of innovation and harnessing new technologies.
And we’re in the premier league of international creativity. 39%pt lead over average of other PSBs for taking risks Channel 4 46%
Next highest PS 14%
Average of other PS s 7% ( C1 & 2, ITV1, C5
We survey our viewers on an annual basis to understand how effectively we are delivering against our remit. The results are published in the annual report.
CHALLENGER BRAND Volume of hours of ews and Current Affairs in peak time (2013)
358 290 Channel 4
353 188
22 We’re critical to providing plurality in genres that deliver public good 23
More new programme ideas tried each year (on average) than any other UK channel of viewers said Channel 4’s 354 67% factual programmes inspired 281 change in their lives 190 178 “Channel 4 is prepared to approach news with attitude 93 in a way no other public service broadcaster could do. I’m not entirely sure how they get away with it, but it enriches British broadcast journalism.” Channel 4 – Richard Sambrook, Professor of Journalism and Director of the Centre for Journalism at Cardiff University
More hours of long-form news and current affairs in peak-time than Viewers felt these programmes also: any other PSB Gave a voice to groups Showed stories about 358 353 188 that aren’t always heard in places you would rarely Channel 4 mainstream media see on ritish TV
Unreported World 43% Unreported World 60% ispatches 35% ispatches 33% 290 Question Time 34% This World 31% 67 Panorama 30% Panorama 28% This Morning 28% The Editors 26% ( C News Ofcom defined peak: 6pm-10.30pm These and other key Current Affairs metrics achieved viewer scores than programmes on the other main PSBs for both of the last three years.
CHALLENGER BRAND 24 Our viewing has remained stable in the multi-channel 25 world and we punch above our weight in digital
Our portfolio market share has been stable over three decades The vast majority of viewing is still via linear TV 15%
10 % 11 11 10.9 10.3 91.8% 8.2% 5% 4.6 Linear TV & PVR viewing Non linear AV viewing (27 hours 3 mins (2 hours 22 mins 0 % 1983 1993 2003 2013 2014 Non-linear includes: Broadcaster VoD, Other long-form, Other AV/short-form Meanwhile revenues have increased steadily and significantly
And non-linear viewing is dominated by the main PSBs* 1bn 938 and non-linear viewing is dominated by the main PSBs 908 800m 770 38% 600m 400m 344 200m 84 0m 22% 20% 1983 1993 2003 2013 2014 14% 8% 7% We are further innovating our commercial model through data 6% collected from over 11m registered All4 viewers Over 11.1m viewers registered in just three years 2011 2012 2013 2014 BBC ITV 4oD Netflix Demand Sky Go Amazon iPlayer Player Five Instant Video 5% 1.9m 6.3m 10.2m 11.3m 3% 3% 3% 3% 2% 2%
iTunes Google UKTV OD Now TV Sky Store Blinkbox Virgin TV Play Anywhere We have an award-winning viewer promise which gives viewers confidence in the way their data will be used *Ofcom figures showing claimed use of online VoD services
CHALLENGER BRAND 26 We’re at the forefront of We help put the UK in the premier 27 innovation and technology league of international creativity Channel 4 helps put the UK in the premier league of international creativity First on-demand service Our recent film success includes: 2006 First broadcaster in the world to offer long-form TV content on-demand through our pioneering 4oD service 26%pt First HD service lead over 2007 First PSB to launch a simulcast 410 awards for 60 films HD service and a ‘plus 1’ service other PS s for Film4 backed released in showing films UK cinemas independent First live commercial film 2008 First live commercial on British television More first run 4 Oscars ritish films on First to YouTube with Google over the last Channel 4 than 2009 Channel 4 strikes a deal with Google to, for the first time, 5 years any other PS offer long-form TV content on YouTube in the UK
No. 1 play-along format 2010 Million Pound Drop launched – the most successful play-along format in the UK to date
First to register “One of the reasons I won the 2011 Roll-out of registration to support delivery of targeted advertising best picture Oscar for that film is because of Channel 4’s First simul-release film investment and belief 2012 First feature film in the world to be released in my work” simultaneously in cinema and on TV, DVD & VoD – Steve McQueen
First aggregated companion app First major feature film,Hunger 2013 First broadcaster to launch an aggregated companion 2008 premieres at Cannes and received the McQueen is one of the Camera d’Or for first-time director app with the launch of 4Now leading British directors in Hollywood. Second major release, First personalised ads 2011 Bafta-nominated Shame 2014 First ever individually personalised Talent grown by digital advertising campaigns Channel 4 goes on to 12 Years a Slave wins 3 Oscars huge international success. 2013 including Best Picture
CHALLENGER BRAND 28 29
A CATALYST FOR SOCIAL CHANGE
Channel 4 inspires citizenship, especially among hard-to-reach audiences 30 WE INSPIRE CITIZENSHIP, We are the only PSB 31 ESPECIALLY AMONG getting younger HARD-TO-REACH AUDIENCES A significantly higher proportion of our audience is aged 16-34 compared to any other PSB channel in the world, We have a greater impact than any including the BBC and ITV other UK broadcaster in making Channel 4 28% audiences think, giving diverse 15% viewpoints and inspiring change 13% in people’s lives. Total 16-34 viewer minutes as a % of all individuals’ viewer minutes We have a stronger relationship with young people than any other PSB in A significantly higher proportion of our news audience is aged the world. 16-34 compared to any another PSB channel Channel 4 17% And we’re a world-leader in bringing 11% diversity into the mainstream. 11% 11% 8%
Percentage of viewers of national news programmes on main PSB channels accounted for by viewers aged 16 – 34 (2013) More than 50% of all 16-34 year olds in the UK have registered with E4 has a larger share of viewing among Channel 4 16-34s than both Channel 5 and BBC2 despite being a digital channel.
SOCIAL CATALYST 32 We provide diverse viewpoints, We bring diversity to the 33 make people think and inspire mainstream change
Best main PSB Lead over average Showing the viewpoint 22% pt of BAME viewers Challenging prejudice
Lead over average PSBs Lead over average for PSBs 25% pt Showing minority 23% pt Best documentaries viewpoints presenting alternative 83% viewpoints of viewers felt Paralympics TV coverage Lead over average of viewers of our will improve perceptions 23% pt Showing different kinds 80% 4Ramadan season of disabled people of cultures and opinions said they learnt something new
Best main PSB for showing the viewpoints of BAME, LGBT and people with disabilities AME Lesbian and Gay isability
Channel 4 40m 86% 70 Hours 30% 28% 26% people watched of the UK population of Winter Paralympics across the whole of the London saw our marketing of coverage during Sochi 2014 – 2012 Paralympic Games London 2012 including the greatest ever commitment 14% 5% 9% the award-winning ‘Meet The from a UK broacaster Super Humans’ campaign
8% 3% 7%
invested in a new 360° Diversity 6% 4% 4% Charter designed to significantly improve levels of diversity across 5m the broadcasting industry and 5% 5% 3% within Channel 4 itself.
SOCIAL CATALYST Channel 4’s unique model underpins it all 36 Our social enterprise model makes us the only commercial PSB 37 whose sole incentive is to invest in valued PSB programming
“Social enterprise is the great Public impact institutional innovation of our times” – David Cameron, Prime Minister
For over thirty years, Channel 4 has been successfully balancing the twin challenges of delivering to a public remit but being commercially self-sufficient. In a world where consumers are demanding that Smaller audiences, High rating, businesses deliver social good and organisations in the charitable high public-impact high public-impact and public sectors are raising more and more money from programmes programmes commercial activities, this has become a powerful business model. £
Channel 4 is a self-sustaining social enterprise, raising commercial revenues from the market and reinvesting surpluses back into British Commercial value public service content from UK independent producers.
£ Maximise commercial return by innovating our Pure commercial entertainment models £ Cross funding programmes Maximise Maximise investment in public impact high quality through free-to-air UK-originated content delivery content
In contrast, ITV and Channel 5 are required to maximise returns to shareholders. They are incentivised to invest in new programmes only We do this through a ‘Robin Hood’ model, crossfunding genres to the degree required for them to effectively compete for market share such as News, Current Affairs and Education (widely accepted as in higher-audience, commercially-attractive content. loss-making), with revenues from commercially ‘rich’ programming, Channel 4’s unique model delivers public value that no other like Factual Entertainment. broadcaster can deliver.
UNIQUE MODEL 38 And Channel 4 isn’t just about broad casting 39
Channel 4 led the bid to Government that secured £37m of match-funded investment in skills and training in the creative industries. Its own 4Talent initiative is a A C4-hosted summit bringing together politicians and young grassroots training scheme designed to find 16-25 year We find innovative We create training olds from all over the UK and enable them to pursue people reached 3.5 million social media accounts, made 8.6 employment in broadcasting. ways to engage million page impressions and generated 2,288 tweets. We & employment launched 4NewsWall, a brand new online news platform aimed opportunities young audiences The scheme is aimed at diverse audiences and was in politics at our key demographic of 16-34 year olds, which delivers the awarded the Deputy Prime Minister’s Award for its day’s stories for the first time in bite-sized, shareable GIFs. pioneering work in social mobility. We also provide paid apprenticeship and work placement opportunities within Channel 4 and at the production companies we support.
Programming such as Sri Lanka’s Killing Fields and recent doc- Using a range of formats from documentaries to entertain- umentaries on LGBT rights like Hunted and Unreported World: ment, our health programmes – such as Embarrassing Bod- Jamaica’s Underground Gays are examples of Channel 4 ies, 4GoesMad and Bedlam – are hugely effective in advising content that bring international pressure on governments We educate the and informing the public. We have impact responsible for injustice. British public on on a global scale health issues This programming is supported online, including In the case of Sri Lanka’s Killing Fields, our films were credited apps like My MindChecker, which allows users by the UN with playing a fundamental role in highlighting the to self-test on a range of mental health conditions and has been atrocities. downloaded over 1 million times.
Channel 4’s Alternative Election Night was the most watched election coverage on commercial TV, The Vote on More4 secured its largest audience of the year and 1.5 million people tuned into a broadcasting ‘first’ when E4 switched off its regular schedule to encourage its viewers We use our unique relationship with younger viewers to to go out and vote. educate them on how to stay safe in an increasingly digital world (e.g. Cyber Bully, Don’t Blame Facebook). We engage citizens We reach young Working in partnership with YouTube’s Spotlight channel, in democracy Channel 4 News was able to reach 22 million subscribers people on difficult And through a range of programmes like My Big Fat Diary with round the clock election coverage. We launched ‘X’, subjects and Hollyoaks, we talk to them about difficult subjects like a campaign to boost the number of under-25s voting mental health, eating disorders and drug abuse, in a language and streamed the first ever Youth Leaders’ Debate in they respect and listen to. association with Shout Out UK. In the lead-up to the election, there were also special editions of Gogglebox and The Last Leg and dramas including Coalition.
UNIQUE MODEL 41
Channel 4 helps fulfil the UK’s innovation strategy at no cost to the taxpayer.
We are a ‘public policy intervention,’ driving innovation and growth by exploiting a publicly owned asset (the terrestrial broadcasting spectrum) to reach audiences and generate revenues. Those revenues go back into funding independent production companies, who retain the rights to the programmes they create. These rights are then exploited on a global scale, delivering revenues direct to the production companies, who return tax receipts to the UK government. If Channel 4 didn’t exist, And on top of all of this, we provide invaluable knowledge and promotional support to help grow the UK’s broadcasting sector and foster its you’d have to invent it. entrepreneurialism. The UK’s innovation strategy focuses on support for small businesses to bring ideas to market, increase knowledge sharing and grow global businesses. This is what we do. Sources 8-9 Channel 4 Annual Report 2014 p.6-7 Oxford Economics report for Channel 4 2014. These employment figures include those employed directly by Channel 4 itself; jobs supported in Channel 4’s supply chain (across all sectors); and jobs created by the 13 impact of staff spending their wages on UK-produced goods and services, both those working for Channel 4 itself and those employed in its supply chain.
Channel 4 Annual Report 2014, p.6 14 BARB, Attentional Limited, Oliver & Ohlbaum analysis (main channel only) Ofcom PSB Annual Report 2014 15 Pact Independent Production Sector Financial Census and Survey 2014, p.15 Channel 4 Annual Report 2014, p.19 16 Channel 4 internal figures Figures show average programme ideas between 2008 and 2013 17 Barb, Attentional Limited, Oliver & Ohlbaum analysis
Oliver and Ohlbaum ‘Taking Risks’ report for Channel 4 21 Channel 4 Annual Report 2014, p.15 Channel 4 Annual Report 2014, p26 Ofcom Third PSB Review 2010-13, Annex 3: Evidence assessing C4C’s delivery of its media content duties, p.115, 131 22 Oliver and Ohlbaum ‘Taking Risks’ report for Channel 4 Unreported World and Dispatches, as reported in Channel 4 Annual Report 2014 from Ipsos MORI commissioned by Channel 4: metric measured were: “Uncovers the truth”; “Covers things in great depth”; 23 “Gives a voice to groups that aren’t always heard in mainstream media”; “Made me see something in a different light”, and “Shows stories about parts of the world you would rarely see on British TV” Channel 4 Annual Reports, 1983-2014 24 Channel 4 internal figures Redshift analysis for Channel 4, 2014 25 Ofcom Communications Market Report 2014, p.135 Channel 4 Annual Reports, 2010-2014 Ofcom Review of Channel 4 Corporation’s delivery of its media content duties 2014, p.63, 65 27 Channel 4 Annual Report 2014, p.27 Ofcom Review of Channel 4 Corporation’s delivery of its media content duties 2014, p.65
Oliver and Ohlbaum ‘Taking Risks’ report for Channel 4, p.97, BARB, based on total 16-34 viewer minutes as a percentage of all individual viewer minutes 31 Channel 4 Annual Report 2014, p.33 Channel 4 Annual Reports 2010-14; Ofcom Review of Channel 4 Corporation’s delivery of its media content duties 2014, p.50 BARB data on E4 viewing vs Channel 4 and BBC2
Ipsos MORI commissioned for Channel 4 Annual Report 2014 32 Channel 4 Annual Report 2014, p.24-33 BDRC Continental for Channel 4 Public value survey, 2013 Ofcom Third PSB Review 2010-2013, Annex 3: Evidence assessing C4C’s delivery of its media content duties, p. 61-63. Figures for 2012.
BDRC Continental and YouGov research for Channel 4, 2012 33 Channel 4 Annual Report 2012
37 Ofcom PSB Review Britain’s Creative Greenhouse
A summary of the 2014 Channel 4 Annual Report and other key facts
To read the full 2014 Annual Report, go to: Channel Four Television Corporation annualreport.channel4.com
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