The decision to launch E4 on Freeview boiled down to Channel 4 forecasting an uplift in ratings and advertising revenues for Freeview, which it expects to exceed lost subscription revenues.
Andy Duncan, chief executive of Channel 4, added that taking E4 free-to-air was "key to our strategy of extending presence in multichannel" and "strengthening public service contribution".
Channel 4 will continue its existing carriage deal with Sky, but has notified Top Up TV it is withdrawing E4 from its package.
E4 is aimed at 18- to 35-year-old ABC1's and broadcasts popular drama series 'Desperate Housewives', 'The OC', 'ER' and 'Hollyoaks' before they appear on Channel 4.
It also broadcasts round-the-clock footage of 'Big Brother 6', which is due to air from May 27.
Channel 4 also announced it will launch the time-shifted channel E4+1 on Freeview at the same time.
Duncan said: "E4's launch on Freeview will make one of digital TV's 'must-have' channels available to 8m new viewers."
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