Channel 4 profits slump

Channel 4 has blamed a drop in advertising revenues and higher spending on digital TV for a 70% slump in profits to £14.5m during 2006.

C4 added that the figures showed it needed extra state funding, or it would have to screen more commercial shows at the expense of public service content.

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Update, from Matthew Hemley in The Stage.

Channel 4 director of programmes and content, Kevin Lygo, has warned that declining advertising revenues are likely to impact on future programmes.
Kevin Lygo, Channel 4's Director of Programmes

He told The Stage “Our drama is really successful and it is in good health, but it is always linked to how much income we get from advertising. Drama gets affected if there is a reduction there.”