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Channel Four Television Corporation Report and Financial Statements 2010 Channel Four Television Corporation Report and Financial Statements 2010

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Channel Four Television Corporation Report and Financial Statements 2010 Channel Four Television Corporation Report and Financial Statements 2010 Looking back Looking forward Channel Four Television Corporation Report and Financial Statements 2010 Channel Four Television Corporation Report and Financial Statements 2010 Incorporating the Statement of Media Content Policy Presented to Parliament pursuant to Paragraph 13(1) of Schedule 3 to the Broadcasting Act 1990 Key Table of Contents Invest in high-quality content Throughout this report readers will see frequent references Chairman’s Statement 4–5 Financial Report and Statements to Channel 4’s remit, as set out in the Communications Act 2003 Innovate and updated and extended in the Digital Economy Act 2010. Chief Executive’s Statement 6–7 Building on our original remit to be innovative, experimental and Cultural diversity distinctive, the new remit recognises the role Channel 4 should Report of the members 92 play in the digital world, not just on the main channel but across Distinctive our portfolio of services. It also introduces four purposes Statement of Media Content Policy Report of the auditors 101 – to nurture talent, stimulate debate, promote alternative Educational views and inspire change. Consolidated income statement 104 Overview 8–15 Nurture talent With the introduction of the new requirement to publish a Statement of changes in equity 105 Statement of Media Content Policy in the Digital Economy Act, Doing things the Channel 4 way 16–25 Stimulate debate this report is structured around the key genres through which Balance sheets 106 Channel 4 delivers its remit, with a view to providing a better Film & Drama 26–33 Alternative views insight into how investment and commissioning decisions Cashflow statements 107 are made. Factual 34–41 Inspire change Significant accounting policies 108 The component parts of the updated remit are summarised Spotlight > E4 42–43 Digital in the list to the left. Throughout the report, a series of ‘icons’ Notes to the financial statements 114 sit alongside the case studies and public value measures Comedy & Entertainment 44–51 Partnership to highlight the parts of the remit that are being addressed. Corporate governance 141 News & Current Affairs 52–59 A description of the remit, as well as the process for selecting Members 148 the public value measures, can be found in the methodology Education & Older Children 60–65 document that accompanies this report Report on members’ remuneration 150 (channel4.com/annualreport). Spotlight > International 66–67 Programmes and the licence 154 Engaging the audience 68–75 Historical record 156 Awards 76–79 Renewing our purpose 82–83 Investing in creativity 84–85 Creative ambitions 86–89 Assurance Report 90 © Channel Four Television Corporation copyright 2011 The text of this document (this excludes, where present, logos) may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not in a misleading context. This publication is printed on paper which is produced using 100% PEFC (Programme for the Endorsement of Forest The material must be acknowledged as Channel Four Television Certification) certified pulp. This is virgin fibre from managed Corporation copyright and the document title specified. Where forests with a verifiable chain of custody which extends right third party material has been identified, permission from the back to the forest. www.pefc.org respective copyright holder must be sought. we are accountable for our performance. at our annual appearance before the House We welcomed the inclusion in the Act of Commons Culture, Media and Sport of enhanced accountability arrangements, Select Committee. which require us to publish an annual There were a number of Board changes Statement of Media Content Policy during the year. I would like to thank Karren Channel 4 is at its demonstrating fulfilment of the remit Brady and Andy Mollett for their contribution and setting out our future strategy. over a number of years, and to welcome our The first Statement of Media Content four new non-executive directors, Mark Price, strongest when at Policy published here builds on the Public Alicjia Lesniak, Monica Burch and Impact Report that we have published at our Richard Rivers. SECTIONCHAIRMAN’S TITLE STATEMENT own initiative for the last two years. Within a There is much to do to steer Channel 4 SECTIONCHAIRMAN’S TITLE STATEMENT its most independent structure that aims to show how we have made through this next phase – I feel confident that content investment decisions in line with our across the organisation we have the people remit, it incorporates a detailed set of objective with the vision and skills to succeed. measures to assess our performance. This includes extensive audience research on public response to us around the key aspects of our attitudes to Channel 4. Throughout the report Delivering remit, although across a range of measures we aim to provide a robust assessment of the we saw a small narrowing in our lead over impact our content has had, together with the remit other broadcasters. As creative renewal speeds indications of how particular activities and Lord Burns, Chairman up, I look forward to seeing greater diversity programmes have met the remit. It contains and experimentation across our output. This our overarching content strategy for the should translate into increasing our reputation following year, which the Board has One of the attractions to the role of Chairman with audiences across the measures in 2011 scrutinised rigorously. We have also discussed of Channel 4 is its unique blend of commercial and beyond. it with Ofcom under our new duty to consult discipline and public service objectives. This David Abraham’s arrival as Chief Executive with them in the report’s preparation. We also keeps us focused on investing as much as in May marked the next phase in positioning look forward to scrutiny of our performance possible in content to fulfil our public service Channel 4 creatively and structurally for a mission, and in 2010 this enabled many converged world. I would like to thank Anne creative successes. Bulford for the tremendous job she did as Our not-for-profit status guarantees our Acting Chief Executive. independence both from shareholders and The second half of the year saw some Government so that we are able to fulfil encouraging signs of the resilience of TV our remit to be distinctive, challenging advertising. As the market began to recover and provocative. I believe Channel 4 is we were able to restore investment in content. at its strongest when at its most independent. However, the structural changes taking place Our approach is to concentrate on delivery in our industry mean that we must continue of our remit to the best of our ability within to evolve commercially. We have continued our means, rather than to seek direct to invest in our digital and online activities, public subsidy. and to support the development of ventures In a General Election year, I was such as YouView. particularly pleased with our distinctive take Parliament’s update of Channel 4’s remit on current events, from the first live televised in the Digital Economy Act was an important debate between the would-be Chancellors, endorsement of Channel 4’s ongoing role in to the Alternative Election Night’s wry take the UK’s cultural, social and economic life. on Election night itself and Channel 4’s It recognises the variety of ways in which characteristically in-depth news coverage. Channel 4 delivers public value – no longer Our research shows that we have largely solely as a single channel, but also across our maintained our reputation amongst audiences digital channels, online activities and in British and met our remit, with a strong year for film. The Act also incorporates four purposes documentary, drama and new comedy, into the remit: to nurture talent, to provide as well as some real successes with online alternative views, to stimulate debate and content and in reaching younger audiences. to inspire change. It is encouraging to see that we continue to As we deliver our public service mission lead on measures that assess the audience’s in more complex ways, it is vital that 4 5 British film production by increasing Film4’s This will be one of the biggest single projects budget to £15 million a year for five years in our history and goes to the heart of our from 2011. mission to provide alternative perspectives, One of my priorities was to put in place a showcase diverse communities and bring leaner executive management team, reducing about lasting change. the size of the senior management group by Nurturing new talent has always been 25%. We also reorganised the sales team to a hallmark of Channel 4. We have continued 2010 was characterised provide a more streamlined offer to clients. to work with hundreds of companies across I was delighted to appoint Jay Hunt to the the UK and run numerous programmes that new role of Chief Creative Officer, and I look offer experience in the creative industries. SECTIONCHIEF EXECUTIVE’S TITLE STATEMENT by transition forward to working closely with her through In my first year at Channel 4, we have put SECTIONCHIEF EXECUTIVE’S TITLE STATEMENT creative renewal and beyond. I would also like in place foundations to prepare us for the to thank Kevin Lygo and Julian Bellamy for future. Our on-screen successes are testament their creative vision over the years. Bringing to the thousands of talented people we work together television and online commissioning with in the independent sector and I would for the first time under Jay will align our like to thank everyone who has contributed Such scope for experimentation inevitably overall content objectives and create new to our output. I would also like to thank Preparing for means not everything met our ambitions.
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