Channel 4 unveils twin-track approach to IP ownership with move into in-house production and launch of Creative Investment Fund

Channel 4 today 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% to 35%. 

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. 

In an increasingly competitive world, this diversification of revenues is an essential step in supporting Channel 4’s 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 robust measures to ensure that independent producers continue to have completely fair access to Channel 4 commissions. 

As part of that framework, Channel 4 is today publishing new Commissioning Guidelines which set out the high-level 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 established as 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. Ofcom will set new guidance on the preparation of our Statement of Commissioning Policy, which we will report on annually and be held accountable for by the regulator. 

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. 

Channel 4 made clear in November 2024 that any development would be gradual, build on the existing diversity in the market and with the intention to avoid any market shock. This commitment is strengthened by increasing Channel 4’s existing qualifying independent production quota from 25% to 35% – the largest commitment of any UK broadcaster – to bolster its enduring commitment to the sector, particularly with small- and medium-sized indies. The quota increase will take effect in early 2026 and is part of a wider package of safeguards set out by DCMS and Channel 4. 

Recruitment under way for in-house production leadership
To support the move into in-house production, Channel 4 has today 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. 

They will be responsible for marrying creative success with commercial growth, developing and nurturing new formats to travel globally, while building a successful catalogue of IP. The successful candidate will be tasked with initially setting up a development team and establishing key business functions and capabilities. 

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% 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. It will continue to back creative talent and global IP creators with ambition for growth through creative and commercial success. 

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 a rigorous approval process for new investments. 

As part of this next phase of evolution, Channel 4 has also announced today 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. Under Caroline’s leadership the Indie Growth Fund has grown significantly, expanding its investment in diverse-owned and Nations & Regions-based indies with 15 investments, with the majority delivering strong returns, including the successful sales of Voltage to BBC Studios and Eagle Eye to ITV Studios. 

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.” 

Further details on the plans will be shared as the projects progress. 

Channel 4 Commissioning Guidelines 2025 can be found here.