Speaking at the 30th Edinburgh Television Festival, Andy Duncan, chief executive of Channel 4 asserted the importance of planning for the channels’ future with the impending digital switchover.
Talking to Greg Dyke, Duncan raised concerns about advertising revenues as a result of the affects of the new technologies coming into the television market, such as personal video recorders (PVRs) and television via broadband.
“In the context of the ITV merger, the BBC and the affect of 2012, Channel 4 needs to be safe. The BBC has a guaranteed income; we need to put in place a strategy for Channel 4 now.”
Dyke, however, pointed out that Channel 4’s advertising revenues had been up by 10% year on year over the last 11 years, more than the BBC and ITV.
He argued: “The figures don’t support the need for extra money. Channel 4 has the audience that all the advertisers want.”
“The problem is” Duncan retaliated, “In five to six years time the way we can balance the books is by cutting out all the programming that makes us great, all the interesting, innovative things Channel 4 is churning out now.”
He continued: “If TV advertising is as strong in ten years time as it is now, Channel 4 won’t have any problems, however, the threat of PVRs is a concern.”
“All of those issues makes life hard for us, we are the only broadcaster who hasn’t got any confirms for the long term” he added.
Discussing Channel 4’s plans for the future, Duncan stressed the broadcaster’s investment in its multi channel strategy, mentioning the highly successful E4 and the soon to be launched More 4.
The chief executive also said the he would be looking into mobile TV saying “the impact of this is something that people haven’t got their heads around “Channel 4 will want a big piece of it.”
Earlier this year, Channel 4 reported its highest ever profit after tax, revealing an increase of 34% to £46 million in 2004, compared to £34.3 million in 2003, according to the broadcaster’s report and financial statements (see Channel 4 Records Highest Ever Profits).
The strong profit growth is attributed to record advertising revenues of 8% and the success of the channel’s commercial arm, 4 Ventures, contributing £161 million to the broadcaster’s annual profits, representing 19% of group turnover.
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