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