C5 May Need To Revise Ad Revenue Forecasts

According to a report in Sunday Business Channel 5 may have to reduce the advertising revenue forecasts it made to shareholders.

It is believed that forecasts of £100m in ad revenue will have to be reduced to £40m after advertisers raised questions about the quality of programmes being offered. As a result of this, shareholders, which include CLT, MAI and Pearson, are supposedly being asked to double their investments.

…Other C5 news includes expectation that the Department of Trade and Industry will today announce approval of the scheme whereby C5 will be able to broadcast on channel 35. This will mean an increase in C5’s coverage of the population from 70% to 78% *ITC Supports Channel 5 Plan.

C5 is also believed to be finalising a deal whereby BSkyB will carry the new channel to its subscribers. If this goes ahead the number of people able to receive C5 will again increase – to around 85% of the population. While some advertisers may be placated by this increase in coverage, financial questions are bound to be raised. BSkyB may, for example, make a nominal charge for carriage of C5 or charges could be ‘hidden’ in an annual subscription rise.

Both Channel 5 and BSkyB were unavailable for comment at the time of going to press.

* MediaTel subscribers only