Channel 4 Pledges Millions For New Programming
Channel 4 has pledged to plough millions into its programming budgets, after announcing its highest ever profit after tax, an increase of 34% year on year to £46 million in 2004.
The growth, announced in Channel 4’s report and financial statements published yesterday, was attributed to record advertising revenues of 8% and the success of the channel’s commercial arm, 4 Ventures, which contributed £161 million to the company’s annual profits, representing 19% of group turnover.
Explaining that the profits would go towards creating a stronger company and diversifying output, chief executive Andy Duncan said: “Our unique status means all our profits are invested back into our programmes and services, for the benefits of our viewers not shareholders. The creative strength of our schedule allowed us to buck the downwards trend in terrestrial TV viewing last year and we are the only one of the five major channels to experience growth so far in 2005. In 2004 this allowed us to increase Channel 4’s advertising revenues by 8%.”
The huge cash injection will go towards strengthening Channel 4’s public service contributions and extending its presence in multi-channel TV. More emphasis will also be made on new new media platforms and spin-off websites, such as the recently launched /music site.
Channel 4 also unveiled plans to invest an additional £13.5 million into single and serial drama from 2006, as well as into news and current affairs, introducing a new permanent lunchtime news bulletin and increasing the annual run of Dispatches to 28 in 2005.
The broadcaster’s digital entertainment channel, E4, will also receive a massive 50% increase in its programming budget in anticipation of its launch on the Freeview platform on 27 May (see E4 Set For Freeview Launch Next Month).
The group’s strong financial performance in 2004 has allowed it to commit a record investment in the core Channel 4 service, with total expenditure on programmes rising by 6% to £485.5 million, compared to 2003’s figure of £457.5 million.
Channel 4 achieved an overall share of 9.8% of television audiences in 2004, compared to 9.6% in 2003. The broadcaster also reported its highest ever share of the peak time audience at 9.7%.
Luke Johnson, Channel 4 chairman, said: “Both Ofcom and the Government believe Channel 4’s contribution to public service broadcasting is going to become even more important as we approach the digital switchover, and they have clearly stated their approval for the strategic direction in which we’re travelling.”
Channel Four: 020 7396 4444 www.channel4.com