New Year Budget Boost Sees Channel 4 Top Half Billion
Channel 4 has announced a massive increase in programme spend for 2006, with wide-reaching budget rises planned for the company’s main TV channels, as well as new media services.
The programme budget for Channel 4’s main station will now exceed half a billion pounds, it’s highest figure to date, with a provisional spend of £505 million up by £15 million on the budget for 2005.
Elsewhere, the broadcaster’s entertainment-focused E4 will enjoy its second budget increase in as many years, with a £7 million boost equating to a 12% increase year on year, taking the station’s programme spend to £67 million. The latest increase follows last year’s 50% rise £40 million to £60 million to coincide with its launch on Freeview (see E4 Shake-Up Paves Way For £20 Million Budget Boost).
E4’s digital sister station, More 4, will operate with a programme budget of £33 million for its first full year on air, while the expected spend for Channel 4’s New Media division will rise by £5 million or 31% to a record £21 million.
Channel 4’s investment in new media has spawned numerous innovations in recent months, such as its FourDocs and 4Laughs services, operating via broadband and allowing users to create their own video content for consumption by the broadcaster’s online community (see Channel 4 Sights Online As New Comedy Conduit).
Commenting on the budget boosts, Andy Duncan, chief executive of Channel 4, said: “Channel 4 has been at the top of its creative game in 2005. Success breeds success and, as a result of what we’ve achieved in 2005, we’re able to raise our editorial spend to record levels and continue to invest in our future.
“It’s our viewers and users who enjoy the fruits of our success, not corporate shareholders. More money in budgets means more public service programmes like Jamie’s School Dinners, Green Wing and A Very Social Secretary, more bespoke content and dedicated services on new media platforms and, hopefully, a strong share of ratings and revenue again this year.”
The broadcaster hopes to end 2005 with a 9.7% share of total TV viewing, a performance on a par with 2004. The main Channel 4 station recently enjoyed its highest ever share of peak time audiences, with a 10% share compared to a previous high of 9.7% achieved in 2004 and 2002.
The station also notched up its largest ever daily audience share last year, with 23.2% of viewers watching the Ashes final in September (see Channel 4 Cricket High Stumps Rivals).
Elsewhere, Channel 4 reports huge success for E4, following its launch on the Freeview platform. The station enjoyed a 30% ratings uplift in 2005, with a 1.6% share of all viewing in digital TV homes (including E4+1). Viewing of E4 and E4+1 amongst 16 to 34 year olds also grew by 30% to 3.1%, the broadcaster claims.
Meanwhile, the broadcaster’s latest digital offering, More 4, has secured a 0.5% share of digital TV audiences since its launch on 10 October, with a 0.74% share of ABC1 audiences. Channel 4 also claims the new ‘adult entertainment channel’ commands the most upmarket profile of any digital station.
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