±±¾©Èü³µpk10

The shake-up at FilmFour Productions comes following losses on two of the major films it launched last year, 'Charlotte Gray' and 'Lucky Break', which both failed to live up to expectations.

FilmFour has previously enjoyed success with films such as 'East is East' and 'Croupier', which failed to make an impact here when it launched in 1998, but became popular in US art houses prompting a UK re-release last year.

A spokesman for Channel 4 said today that FilmFour Productions was looking to bring a partner on board, but that it has no plans to restructure the cable and satellite arm of the channel, which broadcasts independent movies.

The broadcaster said in a statement: "Channel 4 has made no secret of the fact that it is looking at a number of options for its standalone film business FilmFour. These options include bringing in a partner to the business and we are in ongoing discussions with interested parties. We are also looking at further strengthening links between Channel 4 and FilmFour, including refocusing FilmFour to produce films directly for the main channel."

Channel 4 stressed that FilmFour operates separately from the pay-TV channels, FilmFour, FilmFour +1, FilmFour World and FilmFour Extreme, which are not involved in the investment talks.

The spokesman added that the FilmFour channels remain ahead of expectations and are performing in line with their business plans. Channel 4's recent financial results showed that FilmFour increased subscription revenue by 36%, although Channel 4 lost £20.6m in 2001.

The company said in its financial report that Film Four "did not manage to find a break-out film. It invested £31m in production and development and participated in films with a total production value of £112m".

It is thought that FilmFour may revert to the original model of its predecessor, Film on Four, which was set up to make original films for Channel 4.

The announcement marks the first hint of changes at the broadcaster since Mark Thompson took over as chief executive in March.

Thompson is expected to outline further plans for the station when he delivers the MacTaggart Lecture at the Edinburgh Festival in August.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .