Channel 4 has set out a twin-track approach to invest in Intellectual Property (IP) ownership, incorporating a phased move into in-house production and the launch of a new Creative Investment Fund, built on the existing Indie Growth Fund. This new move is accompanied by Channel 4 committing to an increased indie quota from 25 per cent to 35 per cent.

The strategy will see Channel 4 start to build majority stakes in indies and gradually develop focused in-house production capabilities, following the removal of the publisher broadcaster restriction and the creation of a new sustainability duty via the Media Act.

Channel 4 says this diversification of revenues is “an essential step” in supporting its role as a “sustainable champion for independent production and will enable longer-term content investment with indies of all shapes and sizes and in every part of the UK”.

The move into IP ownership will also be accompanied by a package of measures to ensure that independent producers continue to have fair access to Channel 4 commissions.

As part of that framework, Channel 4 is publishing new Commissioning Guidelines which set out the principles which will underpin any new production activity to ensure operational separation from commissioning and a level playing field for producers. This will be accompanied by a new annual Statement of Commissioning Policy to be published later in the year.

Ofcom will oversee this new framework and will consult on their guidance over the coming months.

A phased move into in-house production

Under the new strategy, Channel 4 will start to develop in-house production capabilities to create returnable, scalable formats focused in factual entertainment, reality and entertainment genres with international potential, allowing Channel 4 to benefit from global income streams to drive its investment into UK production.

Channel 4’s in-house production operation will be a separate company with clear operational separation, reporting lines and management distinct from Channel 4 commissioning, processes to ensure fair competition for commissions, and will be accompanied by a new dedicated complaints process for producers.

As a company with reporting lines and management distinct from Channel 4 commissioning, it will be able to pitch to Channel 4 and other media platforms. It is anticipated that production would start in 2026.

To support the move into in-house production, Channel 4 has announced it is looking for an experienced creative lead to launch this new division. Reporting to Chief Operating Officer Jonathan Allan, the newly created role will lead the development of Channel 4’s in-house production strategy and execution.

A new IP investment fund

At the same time, Channel 4 will launch the Creative Investment Fund, with a focus on building majority stakes in Indies and content producers with strong commercial potential.

This new strategy represents an evolution of Channel 4’s current Indie Growth Fund – which has been investing in start-up and scale up indies – including Yeti, Five Mile Films and Warp – since 2014.

However, instead of being an early-stage strategic partner for growth to the next level, the Fund will look to take larger equity stakes in scalable companies, with a clear path to 100 per cent ownership.

The Creative Investment Fund will continue to be flexible in its deal structures, reflecting the varying life stages and needs of its creative partners, whilst seeking to build a portfolio of market leading producers generating diverse income streams for Channel 4.

The Indie Growth Fund already had robust separations and operating principles in place, which have been further reviewed with governance structures and operating principles updated in preparation for the new approach and to ensure alignment with Channel 4’s proposed new Commissioning Guidelines. A new Investment Committee is also being established to provide approval process for new investments.

As part of this next phase of evolution, Channel 4 has also announced that after a transformational six years, Caroline Murphy will be stepping down as Head of the Indie Growth Fund and will leave the channel later this year.

The existing Fund’s Advisory Board will continue to operate with the involvement and support of its external Creative Mentors. Tracy Forsyth, Creative Mentor to the Indie Growth Fund since 2019, will step down following a tenure of invaluable support to Indie Growth Fund companies. Richard Fell is appointed as a new Creative Mentor, with a specialist focus on the scripted company investments.

The Creative Investment Fund will report to Channel 4’s Chief Operating Officer, but given Jonathan Allan’s responsibilities as Interim CEO, the relaunched fund will temporarily report to Martin Baker, Chief Commercial Affairs Officer & MD Paralympics.

New vision for Channel 4’s commitment to UK creativity

Alex Mahon, CEO, and Jonathan Allan, COO and incoming Interim CEO, Channel 4, said: “The plans we are announcing today are the centrepiece of our strategy to diversify revenues and secure Channel 4’s long-term sustainability. The creation of in-house production and our investment in indie stakes will allow us to generate new income streams that are not wholly reliant on the advertising market.

“Indies will always be the lifeblood of Channel 4, and this new direction is an essential element of our strategy to underpin the long-term sustainability of Channel 4 for the benefit of the independent sector and British storytelling – where all roads lead back to investing in UK independent production. 

“The potential for us to take majority stakes in independent production companies is hugely exciting for the industry – the Indie Growth Fund has played a central role in the scaling of numerous indies since its launch and this strategy heralds a new era and greater ambition for the fund. 

“We would like to thank Caroline Murphy, who has played a pivotal role in the Indie Growth Fund’s strong and positive relationships across the sector, and we are especially grateful for her commitment to supporting indies through the challenges of lockdown and successfully exiting a number of our portfolio. 

“We would also like to thank Tracy Forsyth for her passion, enthusiasm and commitment to helping Indies achieve their potential. 

“Separately, we are pleased to be announcing the recruitment for the lead of our carefully considered entrance into the production sector. The move will also signal the increase in our existing qualifying independent production quota from 2026, underscoring our unique commitment to the sector. 

“This new activity will also enable our commitment to growing Channel 4’s impact across the UK, providing investment capital, creating new production opportunities and opening further avenues for our 4Skills strategy. 

“The developments – as part of our Fast Forward strategy – reaffirm Channel 4’s unique position in the UK production ecosystem and our unrivalled role as a champion of British creativity.” 

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