So, here’s the tea: producers in the UK are all in a tizzy because it seems like Channel 4 is playing politics with their shows. Apparently, the network has delayed around 20 premieres, and some people think it’s because they’re trying to prove they can make some extra money in 2023. You see, Channel 4 wants to show off their financial sustainability after winning the privatization battle. But here’s the deal: the ad market has taken a major hit, so it’s not looking too good. Hmmm, sounds a little fishy, don’t you think?
According to some producers, these delayed premieres have been sitting on the shelf for over a year, gathering dust, while the network figures out what to do. And it’s not just a few shows, we’re talking about 20 to 50 launches that have been pushed back to at least Q1 2024. Talk about a major delay!
Now, let’s get into the nitty-gritty of the financials. Before all of this drama, Channel 4 was strutting around like a peacock, bragging about how they turned over £1B ($1.2B) in 2021. They even had a surplus of £20M, although that was a major drop from the previous year’s £101M. But get this, they also have a £75M revolving credit facility just sitting there, and some people in the industry are wondering why they’re not using it during these tough times.
So, why would Channel 4 delay all these shows? Well, some insiders think it’s because the network is desperate to run a surplus and show the UK government that they made the right call by not privatizing. Pretty sneaky, huh? By keeping these shows on the back burner, they can keep them on their balance sheet as stock, which will help build towards that surplus. Once the shows are launched, they can’t be counted that way anymore.
Of course, Channel 4 is denying all of this. They say that they move shows around the schedule all the time for various reasons like editorial considerations and audience demands. They also claim that they are committed to managing their finances responsibly, whether they’re in a surplus or a deficit. But some producers aren’t buying it. They feel like Channel 4 is putting their desire for a surplus ahead of the interests of their production partners. Ouch!
But Wait, There’s More!
These delays are causing quite a ripple effect. It’s not just about the shows themselves, it’s about the whole commissioning process. With all these premieres being pushed back, it’s throwing everything off. It’s making it harder for the network to make decisions about future commissions and recommissions, and it’s wreaking havoc on the production ecosystem. Talent schedules and crew availability are getting all messed up. It’s just not a good look.
And let me tell you, people in the indie sector are livid. They think Channel 4’s management and board need to be held accountable for all this mess. Some small indies are hanging on by a thread, hoping for a recommission to keep them in the black. But it’s not looking good.
Seriously, some of these production companies are in danger of going under. One insider even suggested that Channel 4 should use their £75M credit facility to help them out. It’s like they’re standing in front of a glass case with a hammer, and they just need to break it open.
But not everyone is freaking out. Some people are taking a more chill approach. They say that it’s Channel 4’s prerogative to decide when to launch shows. Schedules can change all the time, right? It’s just the way it goes. Fair enough, I guess.
Now, before we wrap this up, let’s not forget that Channel 4 is still commissioning. They’ve actually just launched their 2023 Contestable Fund, where producers can pitch ideas for formats that will be funded by GroupM Motion Entertainment. That’s pretty cool, right? They’re looking for ideas that are too bold for other broadcasters, and they want them to be ready to go in 2025. Talk about planning ahead.
So, what’s the final word on all of this? Well, Channel 4 says they’re just doing what they always do, moving shows around for various reasons. They’ve faced tough times before and come out on top, so they’re confident they can handle whatever comes their way. But producers and industry insiders aren’t convinced. They think Channel 4 is playing politics and putting their own interests above everyone else’s. It’s a messy situation, that’s for sure. Let’s see how it all plays out.
Oh, and one more thing: this whole commissioning slowdown is really taking a toll on the UK production sector. According to a recent survey, 75% of below-the-line workers are without a job. And Channel 4 is feeling the heat too. They had to cancel that rebooted reality series Four Weddings, and they changed their payment terms on some shows without much warning. It’s a tough industry, folks.
