Channel 4 has announced a significant transformation in its commissioning and production strategy, unveiling a twin-track approach that combines in-house content production under a new brand, Channel 4 Studios, with a revised model for independent producers focused on shared IP ownership. The strategic pivot is designed to bolster the broadcaster’s long-term sustainability, increase commercial returns, and future-proof its unique publisher-broadcaster model.
From 2025, Channel 4 Studios will begin developing and producing content in-house for the first time in its 40-year history. The new unit will operate with its own leadership, commissioning structure, and production capability, and will be headed by former BBC Studios and Lime Pictures executive, Jatin Aythora, who takes on the role of Managing Director. Channel 4 says the creation of its own production arm is aimed at driving value from global IP and maximizing revenue through international exploitation.
At the same time, Channel 4 will update its Terms of Trade with independent producers. Under the new model, which will initially apply to new commissions outside of the current protected genres of news and children’s content, Channel 4 will retain more rights to commissioned content in exchange for offering producers a more balanced commercial share. According to Channel 4 CEO Alex Mahon, this dual strategy is “an evolution, not a revolution,” designed to support the broader UK creative economy while allowing the broadcaster to compete more effectively in a global content market.
“Channel 4 has a unique role in the UK broadcasting landscape and we need to ensure we are equipped to thrive in a fast-changing media environment,” said Mahon. “By enabling both in-house and independent production models, we are unlocking more value and creating more opportunity for the best British content to travel internationally.”
The new Channel 4 Studios will not be limited to serving the parent channel. It will operate competitively in the global content market, partnering with external platforms and broadcasters. The aim is to generate diversified revenues beyond linear advertising, which has faced structural declines in recent years. Channel 4 reported a pre-tax loss of £20 million in 2023 after a sharp drop in advertising revenue, making it clear that innovation in commercial strategy is essential for future growth.
The revised Terms of Trade have been developed following extensive consultation with the indie production community and trade body Pact. Though not all producers will welcome the shift, Channel 4 emphasized that it will maintain its commitment to working with a broad and diverse range of suppliers, particularly smaller and regional outfits that have traditionally benefitted from its commissioning model.
Channel 4 also confirmed that content created under the in-house model will remain editorially distinct, with commissioning decisions made independently of commercial considerations. Mahon stressed that “editorial independence is sacrosanct” and that the new structure would protect Channel 4’s remit to deliver innovative, challenging programming while improving the economic model behind it.
The twin-track strategy marks one of the most substantial changes to Channel 4’s operating model since its inception, as it adapts to a market increasingly dominated by vertically integrated global streamers. By developing in-house production capability and retaining greater rights to commissioned content, Channel 4 is positioning itself to generate more long-term IP value and respond to the economic pressures reshaping public service media in the UK.