Channel 4 set to outperform the market in first quarter

LONDON - Channel 4 is set to outperform the TV advertising market for the first quarter of this year, according to estimates.

The overall television advertising market is saw a rise of 1% in January, but is estimated to be down 4% in February and up by 1% again in March, meaning revenues for the first quarter in 2007 are liable to be slightly down across the market.

Channel 4, including digital channels Film Four and E4, is expected to outperform its rival commercial television channels with estimates putting up by 4% in January, flat for February, and up by 2% in March.

The network's share of total revenue during the first quarter of 2006 was 23.5%. The estimated share of revenue for the first quarter of 2007 is expected to register at 24% jumping half a percentage point.

Digital penetration in homes has been identified as a pointer to the network's recent success in a market that has been managing its own decline.

The launch of More4, in October 2005, bringing a more contemporary adult-orientated feel to the network and the widely publicised shift from a pay-TV model to free-to-air for film channel Film Four in July 2006, creating the UK's only major free-to-air film channel, have been two reasons given by the broadcaster for its market beating approach.

However, Channel 4 has had its downturn in its advertising fortunes. In December, brewer InBev announced it was to cease promotion of its brand Stella Artois during film programming on Channel 4.

The sponsorship of the strand had been a mainstay of Channel 4's sponsorship budget for the past eight years, and had included backing peak movies on the main channel, E4 and More4, as well as the 11pm film on Film Four.

Last month, the broadcaster also faced an uncertainty regarding its long-term partnership with Carphone Warehouse, which decided to suspend its sponsorship of 'Celebrity Big Brother', because of allegations of racism from members of the house towards ultimate winner, Bollywood star Shilpa Shetty.

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