Ad Downturn Claims Jobs At Channel 4

Channel 4 is cutting around 30 jobs and is reducing its investment in its commercial arm, 4 Ventures, by 50% as a result of the current advertising downturn.

Channel 4’s acting chief executive, David Scott, has announced that around 15 staff will be made redundant from the main channel as well as a similar number from within the 4 Ventures commercial business. Short term posts will also be cut and unfilled vacancies closed as the channel budgets for a 20% reduction in non-programming costs.

The channel’s £423m investment in programming will also suffer as a result of the downturn and Scott admitted that: “While the management team is looking for further efficiencies to maximise spending on screen the programming budget will be held close to this year’s level, which will be a considerable achievement in difficult circumstances.”

He added: “Channel 4 is taking a higher share of total TV advertising revenue than ever before but we are still facing a fall of between six and seven percent in advertising revenue against what we achieved in 2000. Despite our comparatively robust performance, we are as exposed to the advertising downturn as other commercial broadcasters and we expect our revenue will remain under pressure throughout 2002.”

The announcement comes just two months after Channel 4 announced that it was reducing its programming ambitions for 2001 due to the “difficult financial market.” A spokesman for the channel said in September that while the investment in programming for 2001 will be higher than last year the increase will be less than the 6-8% of previous years (see Channel 4 Feels The Pinch).

Channel 4: 020 7396 4444 www.channel4.com

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