Channel 4 Returns To Profit After Heavy Losses
Channel 4 achieved its largest ever share of terrestrial advertising revenue in 2002, as peak-time viewing rose to the highest level in its 20 year history.
The channel’s latest annual report, released today, shows that it secured a 24.1% share of terrestrial advertising revenue last year, with its peak-time audience share climbing by 5% year on year to 9.7%.
The broadcaster generated £646 million of advertising and sponsorship revenue in 2002, an increase of 4% on 2001. This extra revenue helped Channel 4 to return to profit with pre-tax gains of £16.5 million for the year, following a £28 million loss in 2001.
Channel 4 saw its overall audience share for 2002 increase to 10%, compared to a 10% fall for ITV1 and a 3% drop for BBC1.
The channel’s peak-time share of 16 to 34 year-old viewers rose by 2% year on year to 12.8% and its share of viewing amongst the key ABC1 demographic improved by 4% during peak hours to 11%.
According to Channel 4’s chief executive, Mark Thompson, the “distinctiveness and originality” of the channel’s programming played a key role in its financial recovery.
Notable successes for the channel during 2002 included Jamie’s Kitchen and current affairs programmes such as Young Nazi And Proud. However, the channel’s fledgling breakfast show, RI:SE, has been something of a thorn in its side, with ratings sinking to just above the crucial 100,000 mark (see Channel 4 To Keep RI:SE Despite Drop In Ratings).
Channel 4 also used its annual report to re-affirm its commitment to digital programming and revealed that its share of viewing in multi-channel homes grew by 12% during 2002, largely due to the success of E4 (see Channel 4 Plans New Launch As 4 Ventures Cuts Losses), Channel 4 and Film Four.
However, 2002 was a difficult year for Channel 4, which embarked on the most radical restructure in its 20-year history. This included proposals for up to 200 job losses and a major shake-up of its senior management team (see Channel 4 Announces Most Radical Restructure In 20 Years).
According to Thompson, this restructuring has been successful and the broadcaster is on target for a ceiling of 900 staff across the group this year.
Looking to the future, Thompson, commented: “The channel’s role is clearly supported within the new Communications Bill, our main hope is that Ofcom will be able to maintain the competition in the broadcasting market that has been a key part of its creative strength over the last decade.”
Channel Four: 020 7396 4444 www.channel4.com
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