£7 Million License Price-Cut for Britain's Channel Five

27 February 2003

It’s Christmas all over again for British terrestrial TV channel Five. Under new terms offered by the Independent Television Commission for Five’s analogue broadcasting license, the channel could save up to £7 million ($11.06m; €10.26m) annually.

Currently it pays the ITC £24.6m a year. However, the regulatory body (soon to be subsumed by new broadcasting and telecoms supra-regulator Ofcom) is feeling generous with public money and has offered the channel a seemingly better deal – an annual fee of just £4.4m plus eight per cent of advertising and sponsorship revenues.

The percentage is likely to equate to around £13.2m based on present income – although in the light of growing audience share and a diminishing output of trash, Five is increasingly seen by advertisers and agencies as a serious strategic medium.

Its future inflow of ad cash (and concomitant percentage to the ITC) looks set to increase considerably over the next few years.

Data sourced from: MediaGuardian.co.uk; additional content by WARC staff