Channel 4 continues move north but ad slump could delay new HQ
CHANNEL 4 outlined a number of measures it would be taking to ensure that it can “successfully navigate” the economic impact of the Covid-19 outbreak – and reiterated its commitment to operations in Yorkshire.
Although publicly-owned and run as a non-profit organisation which invests its available income into commissioning content, the broadcaster is entirely commercially-funded with the vast majority of which is from television and digital advertising.
It said the advertising market is set to be down by more than 50 per cent over April and May, with “limited future visibility”.
In response to how the virus outbreak will affect future operations in Leeds, a spokesman said: “We’re still committed to moving into the Majestic though the Covid-19 outbreak has impacted construction
timetables and there may be some delay to our target date for moving in.”
Announced in 2019, the broadcaster was set to move into the former Leeds nightclub by City Square – still being recreated after a fire in 2014 – later this year.
The channel’s content budget for this year is expected to drop by £150m, meaning programmes will be delayed or cancelled, amid what CEO Alex Mahon called “exceptionally challenging times”.
It is not yet clear how this will affect shows made in Yorkshire, though millions of pounds have been ringfenced for the ‘nations and regions’ outside London.
All of its executive and non-executive board members have taken an immediate voluntary 20 per cent pay cut and directors will not receive any bonuses in 2020.
A further £95m of savings will be achieved across the organisation through a full review of planned projects and investments, including a reduction in marketing budgets, said the broadcaster. There will be a full recruitment freeze for “all but business critical roles” and a review of all third-party costs, while discussions opened yesterday on furloughing around 10 per cent of Channel 4 staff.