Channel 4 wasted hundreds of millions, says Sky

Posted by Owen Amos on 9 March 2009 at 10:08
Tags: Journalism

BSkyB has accused Channel 4 of wasting £270m on “unprofitable non-core commercial activities”.

Sky made the claim in a letter to Lord Carter, as part of their input into his Digital Britain report.

Those “unprofitable” activities include Channel 4 radio, launched in January 2007, but scrapped last year.

According to The Guardian, Sky said Channel 4 is in stronger position than many rivals due to its £425m cash reserves.

Sky has also offered to work with Channel 4 to create a “portfolio of paid-for channels”, heavily promoted on the satellite television. But it said those overtures were “rebuffed”.

Channel 4 – which is state-owned, but relies on advertising revenue – is facing a revenue shortfall, and is asking for more government help.

Meanwhile, Channel 4 chief executive Andy Duncan, and director of programmes Kevin Lygo, have both agreed to take 25 per cent pay cuts, from £650,000 and £750,000 respectively.

Tags: Journalism