Pact response to Channel 4’s approach to IP ownership and move into in-house production

Pact is bitterly disappointed by Channel 4’s plans to wholly acquire companies as part of its plans for IP ownership and in-house production, which will directly impact market share in an already fragile market. Pact only saw the summary of the Channel 4 proposals late yesterday (Tuesday) and this was the first and only time that Channel 4 has discussed their plans with Pact.

This move is in stark contrast to the ‘measured manner’ that Channel 4 CEO Alex Mahon set out when she appeared at the CMS Select Committee in April 2025 and goes against the concept of creating Channel 4’s own IP which is what in-house production is intended for.

Channel 4’s intention is to create a new Content Investment Fund which will replace the Indie Growth Fund which helped many smaller indies with much needed capital to grow. In future these funds will now be directed to Channel 4’s own growth in production. The intention to create a new in-house development team, funded from savings and efficiencies elsewhere begs the questions that after years of diminishing programme budgets why they were unable to make these efficiencies before. The spin that this will mean more money for indies in future is not borne out by any explicit plans as to how any dividends from the new Channel 4 Production will find their way to the Channel 4 programme budget. The Channel 4 Board of Directors should publish specific proposals to back up this claim.

Additionally, it is Channel 4’s intention to house both the new in-house team and the existing Channel 4 Corporation in the same building. This is unacceptable to Pact as there will be no separation between commissioners and in-house, immediately leaving independent producers at a disadvantage. The guidelines governing these relationships will not be fit for purpose when a commissioner meets a member of the development team in the Channel 4 canteen queue.

Commenting on the Channel 4 announcement, Pact CEO John McVay OBE, said: “Having fought very hard against the privatisation of Channel 4, this is a bitter pill to swallow for the indie sector.”