Abraham’s plans for Channel 4
Raymond Snoddy says that while Channel 4 chief executive David Abraham is the very model of a modern media executive, eight weeks into his reign there are, if not quite concerns, a few worries.
David Abraham, chief executive of Channel 4, made all the right noises at yesterday’s annual ISBA lunch, a lunch that was an important symbol just because it took place at all.
Last year things looked so bleak that it was deemed inappropriate for the organisation that represents £10 billion in annual marketing communications expenditure to even hold a lunch.
If not exactly a case of Happy Days Are Here Again, then the decision to re-open the trough at the Dorchester suggests ISBA must not be too fearful about a double-dip recession.
ISBA also obviously has high hopes for the new coalition government; that it will be less interventionist in areas such as alcohol and obesity and more interested in voluntary agreements and partnerships with the industry on advertising rules – more aware of the positive role advertising plays in the economy.
Abraham and Channel 4 declared themselves totally committed to “genuine partnerships” with the advertisers who pay for Channel 4 programmes, rather than a simple buyer-seller relationship.
Then there is the new 10-year partnership finally struck by Channel 4 earlier this week to sell the advertising of Abraham’s old stable UKTV.
The deal, Abraham said yesterday, would make Channel 4 Sales the “go to” place for advertisers wanting to advertise alongside public service content from both the Channel and BBC programmes on UKTV.
Suddenly Channel 4 Sales has scale, accounting for 30% of the UK television advertising market.
And for Abraham – shades of Adam Crozier – impeccable timing taking on his new job, just when the corner has been turned and there are ISBA lunches to address once more.
Channel 4 may only have broken even last year, after taking £50 million out of its programme budget and with revenues down by 8%, but, and it’s a very big but, it has been remarkably successful in holding onto its overall “portfolio” audience share at 11.5%. As the number of channels available in the UK soared to more than 400, how many predicted that?
Big Brother may now be ending with a bang, but just think about the millions upon millions that will now be released to pay for a rash of new pilots – one of which could turn out to be the new Big Brother.
It would be a little unfortunate if they all turned out to be turkeys, but that’s show business. You’ve got to take risks.
Abraham also made all the right noises about Channel 4’s approach to the world.
The begging bowl has finally been put in a glass case. All the years wasted by former Channel 4 chairman Luke Johnson and his chief executive Andy Duncan pleading for someone, anyone, to save the channel from its inevitable demise, are behind it.
Now, appropriate to the political spirit of the age, under Abraham and his chairman Lord Burns, it’s self-help time.
“We are not scanning the horizon for the cavalry,” promised Abraham, who looks the very model of a modern, impeccably dressed media executive who came to television power from the advertising industry – Benton Bowles and St Lukes. No t-shirts in sight.
Yet eight weeks into the Abraham reign there are a few worries. It would be overstating things to say ‘concerns’ just yet, but enough to cause a raised eyebrow or two.
Naturally every new chief executive has a plan and they arrive talking about the urgent need for change. In the case of Channel 4, where there have been cycles of expanding numbers followed by periodic culls, it is probably time to take a fresh look.
As a result, 25 senior management roles are going, out of a total of 48. Apart from the effect on those involved, fewer executives is generally not a bad thing.
However, there does seem more than a whiff of structuralism here – with the structures in danger of taking precedence over the people.
There will be a chief creative officer who will head a new department for creative content. It depends, of course, on who becomes the chief creative officer, but this is fine just so long as no-one believes you can mandate creativity by setting up a new department.
There will also be a director of audience technologies. Fine, audiences are undeniably important for TV stations.
Then there is the creation of a new, merged corporate relations, marketing and press and publicity division under a new senior director.
An entirely rational thing to do except that there are, inevitably, consequences. As a result, Channel 4 is losing its highly experienced head of press and publicity, Matt Baker.
Abraham noted, with total accuracy, that Baker is “one of the top professionals in his field.”
But obviously not “top” enough to fit into the new structure.
Indeed, Baker was at the top of his game recently explaining away the rather unfortunate departure of Channel 4 director of programmes Kevin Lygo to run ITV Studios. After all, Lygo must at least have had something to do with Channel 4 creativity in recent years.
Time for a change, not an obvious disaster, gives the new man the opportunity to create his own template, briefed Baker, loyally.
Abraham also told the ISBA lunch yesterday that one of the first things he had done was call in the Boston Consulting Group for a review of the channel’s sales division, and that he intended to implement any recommendations.
Whatever they are.
Another eyebrow raised.
The young things from BCG are undoubtedly bright but Channel 4 sales director Andy Barnes is one of the top professionals in his field and Abraham himself comes from a commercial and advertising background.
Strange that he should have been quite so fast off the mark in bringing in external consultants, unless he actually has a pretty good idea of what he wants and merely wants external authentication – for cutting a swathe through the sales force.
It’s obviously too early to know after only two months and Abraham will be judged on results like everyone else.
We will be in a better position to have an informed opinion by the time of ISBA’s next annual lunch – if there is one.