Channel 4’s funding model vs the BBC licence fee
Channel 4 receives no public funding despite being a publicly-owned not-for-profit corporation, with no shareholders. It is funded entirely by its own commercial activities, and most of its income comes from advertising revenue.
Ch4 doesn’t make any programmes in-house and instead commissions them from UK production companies. Any profits go back into programme-making, which allows it to fund less lucrative programmes, including the news and current affairs.
By contrast, the BBC is funded principally by an annual television licence fee which is charged to all households, companies, and organisations using any type of equipment to receive or record live television and iPlayer catch-up.
The licence fee (currently £157.50/ year) is then supplemented by income from the activities of its three commercial subsidiaries – BBC Studios, BBC Global News and BBC Studioworks.