Discovery's two-year £8m programming deal with Channel 4 came to an end in March when Channel 4 opted not to renew the contract. The decision is thought to be one of the factors that will see the UK get a larger cut of Discover Networks' five-year $3bn programming budget.
Another factor is the growing importance of the UK market, as multichannel TV penetration continues to rapidly grow. Digital TV is now present in nearly 15m or 60% of UK households.
The Channel 4/Discovery deal gave the US broadcaster a wealth of first-run multichannel programming, which saw Channel 4 hits such as 'Property Ladder', 'Location, Location, Location', 'Grand Designs' and 'Selling Houses' broadcast on Discovery Real Time.
Channel 4 ended the deal partly because it wants the multichannel rights for use on its new channel More4, which will launch in October. With a programming budget of more than £30m, More4 is targeting the over-35s with a mix of original programming and hit US imports such as 'The Sopranos'.
Discovery said that as part of the UK programming investment, new deals would be signed with independent production companies with contracts currently in the works.
Jon Wildman, vice-president of distribution and advertising sales UK for Discovery Networks Europe, said: "The UK is going to be at the forefront of developing content. We're actively pursuing content deals."
Despite the co-production and output deal ending, Discovery and Channel 4 are continuing to work together and recently agreed a deal with 'Touching the Void' indie Darlow Smithson for 'Alive', which sees various life-and-death situations from real-life re-enacted. It will feature the stories of sportsmen, adventurers and ordinary people.
More4 is due to launch on October 8 with a campaign being handled by DDB London, which is expected to be one of Channel 4's biggest promotions for some time.
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