Channel 5 Will Affect Carlton And Granada Revenues

Channel 5, which is expected to launch in January 1997, will hit Carlton and Granada hardest in terms of television revenues, according to a report out by Goldman Sachs. Carlton is expected to grow by just 1.5% , and Granada at 1.1% in 1997.

The report predicts that Channel 5 will take revenues of £99m in its first year, with its first positive profit coming in the year 2000. Whilst they expect Carlton and Granada to be worst hit by the new Channel, by contrast, MAI, owner of Meridian and Anglia Television will grow by 5.7%. MAI is one of the investors of Channel 5 Broadcasting.

Overall UK TV Advertising is set to grow by 6.6% over the next seven years, but ITV overall growth will be reduced to just 2.5% in 1997, Channel 5’s first year.

Channel 5; Its Economic Viability and Differential Impact on ITV Companies is available from Goldman Sachs, price £55. Sarah Peters, Tel: 0171 774 5810