C5 Signs First Airtime-For-Equity Deal

Channel 5 has signed an airtime-for-equity deal with internet start-up company Rapidinsure.co.uk. The deal, the first of its kind for a UK terrestrial broadcaster, will see C5 take a 8% stake in the new company in exchange for sponsorship on the channel.

Channel 5 has been holding discussions with a number of new media companies since last year (see Channel 5 May Swap Airtime For New Media Equity). The idea behind the deal is to allow new companies, many of which have little or no TV budget, to promote their services through Channel 5. Recently, increased demand for TV spots has been created through the influx of dot.com advertising, pushing prices higher and squeezing smaller companies out of the picture (see Feature: Cost Of ITV Increases As Audiences Fragment Across Digital Media)

Rapidinsure launched at the beginning of March offering online insurance for consumers and business. It will sponsor the weather on Channel 5 for one year and there will be links between its site and the C5 website.

James Burgon, Channel 5’s head of new business, said: “Channel 5 is delighted to be associated with Rapidinsure which represents an exciting opportunity in a market with such huge potential. Channel 5 has been developing its new media strategy for a number of months and this is the first of many deals.”

Channel 5: 020 7550 5555