C4 eyes revenue boost with +1 channel launch

Channel 4 is to become the first broadcaster to launch a time-shifted version of its main terrestrial channel

Channel 4 +1, which is due to launch on all digital platforms in August, could result in a rise in Channel 4's share of commercial audience. Media buyers estimate that it could result in an audience boost of up to 20% and, in turn, increase its share of advertising revenue.

The activity comes at a significant time for the broadcaster. Its chief executive, Andy Duncan, has repeatedly argued that Channel 4 faces a funding gap of up to £100m due to increased competition from digital channels and declining TV ad revenues.

In a review of Channel 4's public-service remit, Ofcom announced last week that from 2010, its commercial performance was 'likely to deteriorate' and that it would look at offering some degree of financial support. This could include using the BBC's licence fee to prop up C4's finances.

The launch of Channel 4+1 is likely to incur the wrath of rivals and ITV in particular. It has seen its share of ad revenue fall in the face of Channel 4's strong audience performance, as a result of the Contract Rights Renewal process.

Source: Brand Republic