Channel 4: Producers Anxious Network is playing politics by postponing shows because it’s looking for surplus

EXCLUSIVE: British producers fear that Channel 4 wants to delay the premiere of more programs for political reasons until 2024.

The broadcaster has delayed at least 20 launches and several producers have told Deadline they believe Channel 4 aims to achieve a surplus by 2023 – despite a slump in the advertising market.

The theory among producers is that it could be politically embarrassing for Channel 4 to make a loss so soon after winning the privatization battle in which it has repeatedly stressed its financial sustainability.

Channel 4 emphasized that programs “constantly change schedules” for a variety of reasons, including editorial considerations, competitors activity, audience demands and the responsible management of content budgets.

Deadline spoke with several producers who reported that their release dates had been pushed back. These sources estimate that between 20 and 50 shows scheduled for release in 2023 have been delayed until at least the first quarter of 2024, if not beyond.

Sources say some shows have been on hold for more than a year, and producers are speculating about the cause of the delays.

Before the government’s U-turn, one of Channel 4’s main arguments against privatization was that Channel 4 was in a poor financial state, turning over £1bn (€1.2bn) for the first time in 2021. The latest annual report showed that revenue was flat while it produced a surplus of £20m, compared to £101m the previous year. The broadcaster also has a £75m revolving credit facility, which some in the independent sector have criticized Channel 4 for not tapping into in these tough economic times.

Several sources have expressed the idea that the network is desperate to generate a surplus and prove to the UK government that the decision to reverse privatization was the right one. As a result, sources speculated, Channel 4 is delaying release and therefore holding programs on its balance sheet as inventory, resulting in a surplus. Once launched, shows will no longer be able to be listed in the channel’s accounts in this way.

A Channel 4 insider dismissed the idea, telling Deadline that it is “categorically untrue” that content budgets are adjusted or delayed for political reasons or because of arguments related to privatisation. They emphasized that Channel 4’s commitment to sustainability is about “managing its finances responsibly and with a long-term perspective”, whether in a surplus year or a deficit.

Domino effect

But sources criticized Channel 4 for prioritizing surpluses over the interests of its production partners, pointing to major investments such as spending on English football rights, which have not been extended beyond 2024. They told Deadline that the delays are frustrating because they have a domino effect on the station’s launch plans, which are already faltering due to the long launch delay and the sluggish advertising market. A delayed start inevitably leads to delayed decisions on further orders and restarts, while disrupting the production ecosystem, affecting for example talent planning and staff availability.

Chief content officer Ian Katz, who previously said the broadcaster was “a bit more honest” than rivals about the impact of delaying its launch to 2023, recently said the vast majority of ideas were now being sought for 2025.

“There is so much anger in the indie sector,” a senior source said, referring to an “agreement that Channel 4’s management and board should be held to account.”

Another said delays would be “devastating” for small indies without super-indie backing that may be clinging to hopes of a renewed order to stay in the black.

A highly rated supplier to Channel 4 has said the broadcaster must “break the glass on its £75m credit facility” to prevent some production companies going bankrupt.

A fourth producer took a more measured approach, concluding that it was ultimately Channel 4’s “prerogative” to decide when to air shows, adding that broadcasters’ broadcast schedules were constantly changing.

Channel 4 stressed it was still in business. The Contestable Fund 2023 was launched on Wednesday, for which producers propose ideas for formats financed by GroupM Motion Entertainment. The network is looking for ideas that are “too bold” for other networks to go into production next year and air in 2025, the briefing said.

The Channel 4 spokesperson said: “Channel 4 is a not-for-profit, universal and free public media organization that has invested record sums in British television and film to deliver consistently original, relevant and challenging television.”

“Programs constantly change their schedules for various reasons, including editorial considerations, competitive activity, audience demands and the responsible management of content budgets. And like most commercial broadcasters, Channel 4 responds to changing advertising market conditions by adjusting its content budget, usually requiring the rescheduling of some programmes.

“Channel 4’s ability to respond dynamically to market challenges is one of the reasons it has successfully weathered several recessions and remains well equipped to navigate the very challenging conditions facing the wider sector.”

The overall slowdown in commissioning has had a devastating impact on the UK manufacturing sector and freelance community. A recent Bectu survey found that 75% of workers below the limit were unemployed. Channel 4 has been hit particularly hard, starting with the high-profile cancellation of its rebooted reality series Four weddings. A few weeks later, it changed the payment terms for some of its shows and required certain producers to pay money for their own shows without warning.