C4 Feels Pressure Of 5

Channel 4 has announced that its profits this year will be “substantially lower than in 1996” due to Channel 5 diverting ad revenue away from the channel. A generally fragmented and “intensely competitive” market was also cited as the reason for a drop in profits.

The announcement was made in the broadcaster’s Reports and Financial Statements 1996, which also stated that these factors would mean that, although Channel 4 would remain financially viable, annual profits would be “minimal” from 1998 onwards.

The profit figure for 1996 was £29.3m, after tax and increased payments to ITV, which is down on 1995’s figure of £34.8m.

The report also poured scorn on the idea of privatising C4, saying that standards would fall if this went ahead: “privatisation would make profit, not the fulfilment of the remit, the leading corporate priority, and in so doing would diminish the quality and range of the programme service available to viewers.”

In terms of its share of total TV viewing, C4 has slipped from 1995’s 10.9% to 10.7% last year. The channel’s highest ever share was in 1993 with 11%. There was, however, a 9.5% growth in advertising and sponsorship revenue to £490.4m in 1996.

C4: 0171 396 4444