The chief executive of Channel Four television has warned the UK network may have to change its structure.
According to channel boss Mark Thompson, “technological change and market consolidation are putting our economic model under strain”.
In other words the state-owned channel which is financed solely through advertising is finding the going tough as the multi-channel television sector proliferates.
Increasing fragmentation, largely due to the success of Rupert Murdoch’s BSkyB satellite television network, is eroding audience share.
A flat television advertising market, half of which is controlled by ITV, isn’t helping either.
In a bid to alleviate matters C4 has approached Five, one of the smaller channels, about merging their respective advertising sales houses.
Thompson faces another problem if he wants a major structural change at C4. The network has a public service remit and any change needs government approval and legislation.
Data sourced from: BBC Online Business News (UK); additional content by WARC staff
