Channel 4 To Axe All Profit-Making Phone-In Comps

Reports are breaking that Channel 4 is to cut all profit-making phone-in competitions with the exception of Deal or No Deal, where its share of future profits will go to charity from August 13.

The move is the latest in the ever-unfolding phone-in competition scandal, which has now claimed two top execs from GMTV.

The controller of enterprises, Kate Fleming, who was in charge of premium-rate competitions, has resigned, following GMTV managing director Paul Corley who went last week – the first major figure to go over the participation TV controversies (see GMTV MD To Leave Following Phone-In Scandal).

Last month, premium-rate phone regulator Icstis imposed its highest ever fine, of £150,000, on Eckoh, the service provider on Channel 4’s Richard & Judy ‘You Say, We Pay’ phone-in quiz, whilst C4 had already pledged to provide refunds for all affected viewers and to donate any profit from dodgy calls to charity, handing over £50,000 to Great Ormond Street Hospital (see Channel 4 Makes Richard & Judy Charity Payment).

The Paul O’ Grady Show will return on 17 September without a premium rate competition and all other competitions have already been dropped. Meanwhile, Big Brother phone votes will be kept at a rate that covers the cost of the call plus any charitable donation (see Channel 4 Will Not Profit From Big Brother Phone Votes).

Following the numerous phone-in scandals (see Hanging On The Telephone) and Richard Ayre’s report into PRS services, which found “systemic failures” in the industry (see

Ofcom Finds ‘Systemic Failures’ In Premium Rate Phone-In Services Ofcom To Make Broadcasters Responsible For PRS Failures).

C4 ran around 30 premium-rate phone-ins last year. They are forecast to generate around £3 million in profits to the group this year.

Viewer trust in broadcasters is now at an all-time low. Channel 4 will be hoping that these measures, along with others that have previously been announced (see Broadcasters Look To Improve Viewer Trust), will go some of the way to rebuilding relationships and restoring essential revenue streams at a time when viewing figures and ad revenues are in decline.

Channel 4: 020 7396 4444 www.channel4.com