UK regulator Ofcom has awarded a broadcasting licence to Channel 4 for a further 10 years.
Announcing its decision, Ofcom said its research shows that Channel 4 remains a valued part of the UK’s broadcasting landscape. Ofcom said Channel 4 also continues to deliver content promoting new and diverse voices, and has a crucial role in supporting the creative economy outside London.
The regulator noted that, since Channel 4’s licence was last renewed in 2014, viewing of traditional broadcast TV has seen a long-term and substantial decline, while younger people – who traditionally form Channel 4’s core audience – are turning to online video streaming services.
Ofcom also said Channel 4 is facing financial challenges given its exposure to fluctuations in the advertising market as well as a declining audience share and weakening brand recognition amongst younger audiences.
In response to these challenges, Channel 4 has set out a strategy to transform itself into a “digital-first public service streamer” by 2030.
As part of the new licence, Ofcom has increased by a third the annual requirements on Channel 4 for production spend and programme hours made in the UK outside of England - from 9% to 12% by 2030,
Alex Mahon, Chief Executive of Channel 4, said: “The new licence provides clarity for the next decade as we deliver our unique public service remit – investing in distinctive British content and trusted news for audiences and supporting the growth of the creative economy across the UK. Ofcom’s recommendations support our drive for even greater distinctiveness, allowing us to build on our position as the only major commercial broadcaster to grow overall viewing minutes this year and continue our industry-leading digital transformation.
“We also welcome Ofcom’s decision to increase Channel 4’s nations quotas by one-third – from 9% to 12% of our main channel content spend and hours – in Northern Ireland, Scotland and Wales by 2030. We believe this strikes the right balance between the commercial flexibility we need as a business and fulfilling our goal to support sustainable production growth across the nations. Channel 4 will strive to reach the 12% level by 2028 – two years ahead of target.”
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