ThisisBigBrother.com - UK TV Forums - Channel 4's profits plummet

ThisisBigBrother.com - UK TV Forums (https://www.thisisbigbrother.com/forums/index.php)

- International Big Brother (https://www.thisisbigbrother.com/forums/forumdisplay.php?f=11)

- - Channel 4's profits plummet (https://www.thisisbigbrother.com/forums/showthread.php?t=32709)

Channel 4\'s profits plummet

Quote:

Channel 4 faces cuts as profits plummet

By Richard Alleyne
Last Updated: 1:52am BST 02/05/2007

Executives at Channel 4 warned yesterday that the broadcaster could be forced to cut quality programming after profits fell by more than two thirds in a year.

They said spending on public service programming may have to be reduced in favour of money-spinners such as Big Brother after the fall from nearly £50 million in 2005 to £14.5 million last year.

One of the channel's big American imports, such as Desperate Housewives, The Sopranos or Ugly Betty, could also fall victim to the squeeze.

The slump, revealed in the broadcaster's annual report yesterday, came despite Channel 4 increasing overall revenue by five per cent to a record £937 million and increasing its overall audience share by more than 10 per cent.

Executives blamed falling advertising revenue and an increase in the cost of making programmes for the drop and reiterated their call for government help.

Luke Johnson, Channel 4 chairman, said: "Unless we receive some form of assistance we may be faced with a stark choice: either we will have to reduce our output of public-service programming and focus more of our schedule on commercial programmes, or see Channel 4's finances continue to deteriorate."

Andy Duncan, the chief executive, added: "Last year illustrates the financial pressures we are facing.

"We comprehensively outperformed our competitors, both critically and commercially, but our financial surplus fell sharply as a result of tough market conditions and our need to invest in creativity to maintain our audience."

But despite the fall in profits, yesterday's report also showed that Mr Duncan is expected to earn £1 million this year, including a bonus of £149,000 and £450,000 in loyalty payments.

http://www.telegraph.co.uk/news/main...02/nitv202.xml

from www.metro.co.uk

Channel 4's chief executive will pocket £1million this year – despite a huge drop in profits and the controversial Big Brother race row and phone quiz scandal.

Andy Duncan's £622,000 salary will be boosted by a £149,000 performance bonus and £375,000 loyalty handout.

The news came as the station revealed that profits fell 70 per cent to £14.5million last year.

Spending on current affairs, religious and educational programmes was also cut.

Mr Duncan, who has been at the channel for three years, faced calls for his resignation earlier this year over the handling of the Celebrity Big Brother race row.

The station also came under fire after it was revealed that viewers were urged to call Richard and Judy's You Say, We Pay competition even though potential winners had already been chosen.

An inquiry has been launched and the quiz has been dropped.

Channel 4 chairman Luke Johnson called for more Government money for the station as he defended Mr Duncan's pay packet.

He said: 'We need to retain the best talent if Channel 4 is to continue to perform as well as it has done. These peoPay rise: Andy Duncan ple do not come cheap.'

Not too shocking, I heard Micheal Grade at ITV gets £9million

I hope they don't give up the American imports, they are the only thing i watch on C4 (besides Big Brother!)

If they drop DH, and it suffers the same fate as LOST, I will never watch C4 again.

They'll pick up, I mean look at ITV last year and look at it now!

It's a shame that C4 lost Lost.

...but losing any more shows wouldn't affect me, as long as Big Brother stays with Channel 4.

Keep BB and US imports :)