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The outgoing head of Channel 4 has called on UK ministers to do more to support British-owned intellectual property, as the film and television sectors grapple with the threat of Donald Trump’s tariffs.
Alex Mahon said on Wednesday that while government tax breaks for overseas companies benefited UK-based crews, a focus on courting “offshore” productions left the industry in a precarious position “because then [another country] introduces a bigger tax break and everyone’s gone”.
The government has named the creative industries — which are worth about £125bn and employ roughly 2.3mn people — as one of eight “growth-driving” sectors in its industrial strategy. Ministers have so far set out policies focused on tax credits for independent films and visual effects post-production.
Mahon, chief executive of the public sector broadcaster since 2017, said Trump’s proposal at the start of this month to slap a 100 per cent tariff on all films produced outside the US was a “worry” for the UK sector.
“We don’t want the tariffs — which are unclear yet — to disrupt production. The film industry is in a ‘wait-and-see’ mode,” she said.
In its annual report published on Wednesday Channel 4 announced plans to develop and purchase its own intellectual property, a concession it won as part of reforms unveiled after the government decided against privatising the commercially funded broadcaster in 2023.
It will hire a small team of staff to create in-house productions, and launch a “creative investment fund” aimed at building majority stakes in independent studios.
Mahon’s departure has been a point of uncertainty for the broadcaster, which is in the middle of a shift in its business model from a waning linear television business to a growing online streaming and social media model, where more of its audiences are.
In 2023 Channel 4 registered a steep drop in advertising revenues, leading to job cuts and a deficit of £52mn. On Wednesday the broadcaster said it had slashed its deficit to £2mn in 2024.
“It’s always tough to pick your moment,” Mahon said of her decision to leave to take the helm of Superstruct, a global music festival operator backed by private equity group KKR. “I’ve had 10 secretaries of state [for culture] and five prime ministers, so it seems like a stable time.”
A replacement chief executive has not been named and the broadcaster is also without a chair, after Sir Ian Cheshire announced last year he would also stand down.
Jonathan Allan, Channel 4’s chief operating officer, will serve as interim chief executive, while Dawn Airey is serving as chair until a permanent appointment is made.
The company reported a slight increase in revenue last year, from £1.02bn in 2023 to £1.04bn in 2024. This week it set out plans to stream its content on Spotify, as part of a partnership with the US group aimed at reaching more young viewers.
