RTS: Video on demand will replace lost viewers, says C4 chief Abraham

Video-on-demand and time-shifted services such as Sky+ will enable broadcasters to replace the viewers lost through fragmentation, according to David Abraham, Channel 4 chief executive.

David Abraham: Channel 4 chief executive
David Abraham: Channel 4 chief executive

Speaking at the RTS International conference Channel 4's leader said he was "optimistic" about the ability to fund high-quality content through converged platforms.

He said: "In terms of viewing, I think technology will ultimately recover the effects of fragmentation that was experienced by traditional linear TV 10 years ago.

"If you look at catch up, that's how you add audiences back up, it is being done in a different way with different technology."

Abraham also said linear TV platforms have "immense power to stimulate VOD usage" and he used the example of the coming-of-age comedy series 'The Inbetweeners', which generates a large audience online.

Video on demand accounts for a relatively small proportion of TV watching and a correspondingly small share of ad spend.

On TV sets 93% of TV viewing is live TV, 6% is time shift, 0.8% is catch up and 0.2% is other VOD services.

Abraham said: "I think TV is a very accurate and highly accountable medium. New technology will allow us to compete with some of the [internet's] alleged accountability.

"In order to do that we will have to develop how we approach how we package our audiences to the agencies."

Among the multitude of changes put in place since Abraham started on 4 May, Channel 4 has restructured its sales team into agency facing teams which Abraham said offered agencies a "single point of contact".

Abraham said: "It's a series of steps. The Holy Grail we may arrive at could alter the rather old and inflexible trading model. Channel 4 has long been an innovator in specialising in targeting audiences.

"Hopefully we will be able to take a leap forward in how we package our audiences to advertisers."

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