Programming spend likely to be slashed when cost-saving measures are revealed this afternoon

Channel 4 is preparing to outline a major series of cost-saving measures at an all-company meeting this afternoon, Broadcast understands.

Chief executive Alex Mahon, director of programmes Ian Katz and chief commercial officer Jonathan Allan are to brief the broadcaster’s 900-staff via a video-conference call about how it must act in order to safeguard the future of the business in the wake of the coronavirus pandemic.

While a complete freeze on commissioning is not expected, Broadcast understands that a significant reduction in spend on programming is likely.

At the start of the month, C4 introduced daytime tariffs of £50,000 for its Lockdown Academy primetime commissions as it parachuted in a number of fast-turnaround shows to prop up its schedule.

C4 needs to slash costs to reflect the plummeting ad market and earlier this week Enders Analysis warned the broadcaster is disproportionately exposed to “the greatest challenge faced by the commercial broadcasting sector in the past 65 years”. This, in part because of C4’s reliance on advertising revenue, compared to its larger rival ITV, which has a significant production business.

It is not clear if C4 will look to take advantage of the government’s scheme to allow companies to furlough staff.

The emerging measures follow reports that C4 paid some £5m in bonuses to staff in March, shortly before it begun discussions with government about accessing its £75m debt facility.

The payments were made in relation to the broadcaster’s performance in 2019 and were ratified by its remuneration committee in January, but have nevertheless caused some disquiet across the production sector with a number of individuals suggesting that senior management should return the funds.