Channel 4 To Buy Half Of Emap Music TV
Channel 4 is to buy 50% of Emap’s music TV business, Box Television Ltd, for £28 million.
Emap first moved into music television in 1996 with its purchase of The Box for £6 million. Its TV business now comprises seven TV channels: The Hits, The Box, Smash Hits, Kerrang!, Q, Kiss and Magic.
In a statement released today, Emap said that the joint venture will look to exploit new and emerging digital growth opportunities beyond traditional broadcast revenue streams.
Channel 4 is already working with Emap as part of the 4 Digital Group consortium which won the battle for the second national DAB multiplex licence (see Ofcom Publishes Reasons For DAB Multiplex Licence Award).
Andy Duncan, Channel 4’s chief executive, said: “This is a strategic investment for Channel 4 designed to generate significant revenues that can be reinvested in supporting our public service activity longer term. Music is an important part of Channel 4’s strategy for future growth and we intend to further strengthen our cross-platform presence with the launch of three 4-branded radio stations from next year.
“We are already partnering with Emap in radio and are delighted to be extending that relationship into television and onto other digital platforms as we look to build on Channel 4’s strong heritage as a leading broadcaster of music programming.”
Paul Keenan, chief executive of Emap Consumer Media and executive director of Emap, said: “This alliance between Emap and Channel 4 will enable us to increase our music brands’ presence on new and emerging platforms, including video on demand, opening up new opportunities outside of the traditional linear broadcast market for both audience and revenue growth. Emap and Channel 4 are like minded partners and together we make a formidable force in an otherwise fragmenting and challenging market.”
In the year to 31 March 2007, Emap’s music TV business had revenue of £27 million and operating profit of £7 million.
Last week, Emap agreed to sell its Republic of Ireland radio stations to the Irish and European radio group Communicorp Group for around £135 million (see NewsLine).
Emap: 01733 568 900 www.emap.co.uk Channel Four: 020 7396 4444 www.channel4.com