Channel 4 Considers New Free Digital TV Offering
Channel 4 is believed to be considering the launch of a new free-to-air digital television channel for older viewers, in an attempt to cash in on the success of the recently unveiled Freeview platform.
Reports suggest that Channel 4, which already operates pay-TV channels E4 and FilmFour, is looking at the possibility of launching a channel called G4 for older viewers, such as those who currently watch US sitcom, Frasier.
G4 would differ from the strongly youth-orientated E4 and would allow advertisers to target the increasingly lucrative and comparatively under-served grey consumer market (see Feature: Old Money In The Grey Consumer Market).
Channel 4’s existing digital channels are effectively barred from the Freeview platform by the decision not to offer a pay-TV option for customers. However, it is understood that plans for a new channel may still result in another pay-TV option.
Channel 4’s chief executive, Mark Thompson, told the Financial Times: “Economically it doesn’t make sense for us to make E4 or FilmFour free-to-air right now.”
He added: “There might come a point where it makes sense to launch free-to-air channels and we’ll look at that. It depends on the number of households and what the advertising revenue Freeview homes could achieve.”
Thompson said that Channel 4 was not being forced into the launch by the exclusion of its pay-TV services from Freeview, which already carries channels from the BBC, BSkyB and ITV. He told the FT that the strong performance of Channel 4 in Freeview homes, compared with other multichannel platforms had provided food for thought.
Following his appointment in December 2001, Thompson dismissed claims that Channel 4 had overstretched itself by investing in its digital operations (see
However, last year Thompson cut 45 jobs at 4 Ventures, which houses the group’s media and digital operations, in an attempt to make cost saving that could be poured back in to Channel 4’s core programming budget (see Channel 4 Cuts 45 Jobs From Commercial Arm).
Last week Channel 4 promoted Dan Brooke, the general manager of E4, to head up all of its digital TV, interactive and online activities (see Channel 4 Promotes Brooke To Head Digital Operation).
Channel Four: 020 7396 4444 www.channel4.co.uk
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