Digital investment hits profit at Channel 4

State-owned broadcaster Channel 4's audience share increased by 2% during 2000, as shows such as Da Ali G Show and Big Brother helped the channel increase its turnover by 12%.

Group turnover came in at £716m, helped by a strong performance by digital channel FilmFour which doubled its turnover to £8.8m.

However, operating profit fell 25% to £33.8m as the channel increased spending in interactive and online projects.

The announcement came as the broadcaster delivered its annual report and outlined its spending plans for the coming year with the creation of its 4 Ventures commercial arm.

The plans include £60m investment in FilmFour, which has increased its subscription numbers to 405,000 and which needs around 800,000 subscribers to break even. New digital entertainment offering E4 will swallow around £80m. The channel will invest £50m in feature films and interactive services will receive £23m.

A further £23m will be needed to finance the channel's part in the Go Racing consortium, which is on the way to picking up the digital and TV rights to UK horseracing.



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