Economic analysis shows Channel 4 generated £274m of GVA in the UK Nations & Regions and supports nearly 3,000 jobs outside London
A new independent report from EY, commissioned by Channel 4, has revealed that the broadcaster contributed nearly £1bn to the UK economy and supported more than 10,000 jobs across the UK in a single year.
The report, published in full today, shows that Channel 4 generates £274m of GVA (Gross Value Added) through its supply chain in the Nations and Regions – and supports nearly 3,000 jobs as a result of Channel 4’s activities in the Nations and Regions.
Overall, EY’s economic impact assessment finds that Channel 4 generates £992m* of GVA for the UK economy and supports just over 10,600** jobs in the UK.
All data is calculated based on Channel 4’s 2019 financial results – the most recently published by the organisation.
The EY report anticipates that Channel 4’s economic impact to the Nations and Regions is expected to increase further over time as a result of its 4 All The UK strategy.
Channel 4 CEO Alex Mahon said: “It’s heartening to see the impact Channel 4 has above and beyond our work and spend within the broadcast industry. It reinforces the important role Channel 4 can play in helping to level up regional inequalities of income and opportunity across the UK.
“Additionally, our commitment to the Nations and Regions through our 4 All The UK strategy will also help us achieve our vision to become even more representative of the UK.”
The 4 All The UK strategy saw the opening of three new regional centres across the UK, two of which only officially opened towards the end of 2019. Its national HQ in Leeds and a Creative Hub in Glasgow both opened in October 2019. A creative hub also officially launched in Bristol in January 2020.
At the heart of its 4 All The UK strategy is a commitment by Channel 4 to increase its main channel content spend in the Nations and Regions from its current quota of 35% to a new voluntary target of 50% by 2023, worth up to £250m in total.
Channel 4 also now has senior, creative decision makers at Channel 4’s offices across the UK as part of its 4 All The UK plan. When fully implemented there will be up to 300 Channel 4 jobs in the Nations and Regions.
The report also noted that Channel 4 makes a wider contribution to the British ecosystem through its support of emerging talent and diversity through a number of training initiatives and investments.
These activities supported opportunities for people and business across the UK’s Nations and Regions but also focused on supporting diversity more widely including people with disabilities, from BAME communities and from different socioeconomic backgrounds.
In addition to the economic analysis, the report explored some of the Channel 4’s initiatives in more detail including: the recently launched 4Skills training initiative; the Production Training Scheme; Growth Fund; Emerging Indie Fund; Creative Diversity Fund; and the Indie Accelerator.
Notes to Editors
Channel 4 commissioned EY to assess its economic, social and cultural contribution to the UK and its Nations and Regions.
To conduct this assessment, EY carried out quantitative economic analysis of Channel 4’s economic contribution to the UK and its Nations and Regions in terms of its contribution to the economy (measured as gross value added or GVA), and jobs; and case study analysis of Channel 4’s social, cultural and economic contribution to the UK and its Nations and Regions.
The analysis is based on a mixture of data and information provided by Channel 4, publicly available data and information, and interviews with relevant experts.
The analysis considered three types of economic impacts:
Direct impacts: EY analysed the economic impacts driven directly by Channel 4, such as Channel 4’s GVA (or contribution to the economy) and the number of employees hired by Channel 4. The direct impact consists mainly of the income received by Channel 4’s employees (including wages, benefits, employment taxes, national insurance and pensions) and profits made by Channel 4.
Indirect impacts: Channel 4 purchases goods and services from other companies in its supply chain, which in turn have their own suppliers. EY estimated the indirect economic impacts of Channel 4’s activities across its whole supply chain.
Induced impacts: Each entity involved in Channel 4’s supply chain pays compensation to its employees. Those employees spend part of their salaries on goods and services, driving additional economic impacts. These impacts are referred to as induced impacts.
*EY assessed Channel 4’s economic contribution to the UK and its Nations and Regions in terms of its contribution to the economy (gross value added or GVA) and jobs.
** Channel 4’s activities supported around 10,600 jobs in the UK economy in 2019. Of these jobs, 993[1] (9%) were people directly employed by Channel 4. A further 6,220 (59%) were supported indirectly through Channel 4’s supply chain. For example, this indirect employment includes jobs in the production sector, as well as agency staff that Channel 4 outsources certain functions to. The increased consumer spending as a result of Channel 4’s activities supported a further 3,403 (32%) jobs as induced effects.