Pact Slams Channel 4’s IP Play and In-House Production Plans: ‘A Bitter Pill to Swallow for the Indie Sector’

by

Pact, an industry organization, has given a harsh criticism of Channel 4’s freshly announced intentions to buy production companies entirely and establish their own in-house production units.

As a movie enthusiast hailing from the U.K., I found myself taken aback when I learned about the significant overhaul in our screen sector, with barely any heads-up. The independent production and distribution companies’ representative body, to whom I owe much for keeping our cinematic landscape vibrant, was only presented with a brief overview of the proposed changes “yesterday evening” – mere hours before the official announcement on Wednesday.

In a statement that hints at escalating disagreements, John McVay, head of Pact, expressed his disappointment after a long-fought battle against Channel 4’s privatization, as this move is tough to accept for the independent production sector that has been providing content to the broadcaster for more than four decades.

The main point of contention revolves around Channel 4’s plan to change their current Indie Growth Fund into a Content Investment Fund. This change will move the focus from backing independent producers to bolstering Channel 4’s own production endeavors. While Alex Mahon and Jonathan Allan, executives at Channel 4, presented this shift as necessary for ‘creating additional revenue sources’ and ensuring ‘long-term viability,’ Pact expressed their disappointment, stating that Channel 4’s strategy to completely buy out companies could potentially ‘affect market share in an already delicate industry.’

The trade organization showed strong disapproval, finding it hard to reconcile the present strategy with Mahon’s earlier description of a “tactful” approach during his testimony before the Parliamentary Culture, Media and Sport Select Committee – an influential cross-party group responsible for overseeing British media policy – in April.

Statement by Pact poses sharp queries regarding the financial management at Channel 4, questioning their delayed realization of “cost savings and operational improvements” to finance an in-house development team, despite years of shrinking budgets for programs. The organization insists that the Channel 4 board should disclose detailed plans demonstrating how this restructuring will eventually advantage independent producers (indies).

It’s concerning for independent producers to learn that Channel 4 plans to locate both its commissioning team and its new in-house production unit in the same building. According to Pact, this setup is problematic because it could lead to an unfair advantage when a commissioner interacts with a member of the development team during a casual encounter like waiting in line at the Channel 4 cafeteria.

Independent producers find it troubling that Channel 4 wants to put its decision-making team and its own production unit in the same building, as this setup might give an unfair edge when commissioners meet development team members casually, like in the canteen line.

EbMaster has reached out to Channel 4 for comment.

At a crucial juncture, Channel 4 finds itself in the midst of a critical situation, having just announced an increase of 13% in streaming views to an all-time high of 1.8 billion. However, this impressive growth didn’t prevent the company from reporting a pre-tax loss of £2 million ($2.6 million) for the year, marking a significant improvement compared to the previous year.

With Mahon stepping down from his broadcaster role in July, it falls upon interim CEO Jonathan Allan to steer through turbulent waters. The independent production sector seems readied for a prolonged struggle, viewing this situation as a potential existential danger to the distinctive creative environment that has shaped British television for many years.

Read More

2025-05-21 17:17