Overview

• At the Deloitte Conference in London on June 3, Sony’s Wayne Garvie labelled Channel 4’s new in-house production arm “ridiculous” and “potentially disastrous.”
• Garvie cautioned that broadcasters launching production units often run at a loss for at least three years before turning a profit.
• Outgoing CEO Alex Mahon defended the plan as modest and intelligent, noting Channel 4’s £111 million cash reserve earmarked for content investment.
• Under the May strategy, Channel 4 will set up a separate company to produce entertainment and reality formats with international appeal and take majority stakes in third-party producers.
• Garvie urged wider public service broadcasting reform, including a future merger of Channel 4 with the BBC to streamline resources.