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Digital revenue pulls Channel 4 through advertising slump
Marketing News |
25/06/2010
Digital revenues helped Channel 4 survive "an unprecedented collapse" in traditional television advertising during 2009, it has been reported.
The commercial broadcaster said it had witnessed the worst recession in its 28-year lifespan, experiencing a 12 per cent fall in income on its main channel.
However, the robust performance of its digital channels E4, Film4, More4 and 4Music, and its video-on-demand service 4oD, helped the firm record a £300,000 profit for the year.
Although this was some way down on the £1.8 million surplus in 2008, the group remained in the black.
Overall turnover fell from £906 million to £830.3 million last year, however a cost-cutting programme helped Channel 4 balance the books. Total operational spending fell by £68.2 million to £778.7 million, a year-on-year decrease of eight per cent.
On Channel 4 itself, marketing revenue declined from £668.7 million to £575.1 million, with the main channel making a £61.6 million loss.
David Abraham, who assumed the role of chief executive last month, said it was a credit to staff that the broadcaster had come through such a sharp downturn "with its share of advertising revenues, ratings and cash reserves intact".
He noted that producers had continued to deliver creative excellence despite having "significantly less money to spend on content".
Mr Abraham concluded: "We have created a stable financial base that allows us to commit with confidence to a fresh round of creative and commercial innovation, renewing Channel 4's schedules post-Big Brother and positioning ourselves to take advantage of the opportunities that arise from the ongoing convergence of television and other media."
Back in May, ITV's new chief executive Adam Crozier claimed an upturn in the television advertising market had been seen since the start of 2010.
He revealed that ad revenues rose by six per cent to £450 million during the first quarter of the year, but still remained down on the equivalent period in 2008.
Posted by Jon Aspinell
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