Whats this Channel4 ?
Digital Audience
The arrival of digital TV and multi-channel homes in the UK has already changed the ground rules for broadcasters significantly. Although the new shape of UK broadcasting may be emerging, it is likely that the 'screen-based entertainment' world of the near future will be very different from the one that has so far appeared.
Initially C4's new digital channels were launched on satellite and cable TV as subscription services. It was assumed by C4 (and by most commercial broadcasters) that subscription revenues would be needed in order to offset the decline in advertising revenue that would result as audiences 'fragmented' into ever smaller niche markets to view numerous specialist channels. This projected move from 'broadcasting' to 'narrowcasting' was based on the experience of the USA TV market. The success of the subscription channels such as HBO encouraged C4 to believe that it might do well at the 'quality' end of such a market.
C4 had some initial success with the launch of FilmFour in 1998, which established a subscription base of 300,000. E4 was launched in January 2001.
The success of Freeview has changed the situation drastically. The new terrestrial digital platform rose from the the ashes of the failed 'ONdigital' and 'ITV digital' services. Freeview was launched in 2002 by a BSkyB and BBC partnership, by 2007 it had become the UK's most popular digital platform (8.4 million viewers compared to Sky's 8.1 million). Much of the credit for Freeview's success goes to the BBC for first providing a 'critical mass' of free digital channels and then marketing them effectively (and at a minimum cost). The BBC's director of marketing in 2002 was Andy Duncan; who became the new Chief Executive of Channel 4 in 2004.
'Portfolios and Families'
In the current TV environment each terrestrial broadcaster is running a 'portfolio' or 'family' of complimentary digital channels. Channel 4's digital services 'punch above their weight', with around 2.9% share of the total TV audience (the BBC has 3.2%, ITV 3.2%). More than 76% of viewers watch a C4 digital channel at some time during the week. Of the top ten channels on Freeview, E4 is the third most popular, More4 is fourth and Film4 is seventh. The C4 channels are also amongst the most important digital channels for advertisers, having a high share of commercial impact or SOCI (a 'commercial impact' equals one person seeing an advert). The commercial success of these channels means that the 'free to air' model is currently working well for C4.
E4
E4 is the most successful of C4's digital channels, attracting an audience 10 to 20% the size of Channel 4. Whilst initially the channel carried mainly C4 repeats and 'spin-offs', E4 has now reached the point where it can achieve mass audience breakthroughs for its own commissioned programmes (such as 'Skins').
E4's appeal is highest amongst ABC1s and 16-34s. The ability to attract this audience is very important for C4. The 'upmarket young' are a highly selective audience and watch comparatively little television. They are also a high spending demographic who are very attractive to advertisers.
The channel reaches 60% of young adults (6.91 million) a month. This 'reach' compares very favourably with the other big digital channels: ITV2 (7.6m), Sky One (5.3m) and Living (4m).
E4 has the highest 'SOCI' rating of any digital channel for the 16-34 audience and the second highest ratings for 'ABC1s.' The E4 brand also seems to be one that is recognised and appreciated by its core audience; according to the 2006 'Teen Audit', 80% of teenagers think that 'E4 is the TV channel they most respect'. E4 is also considered the ‘coolest’ channel by 16-34s. The establishment of E4 as a 'lifestyle brand' means that 'brand extension' is possible. E4 Radio will be launched in 2007.
More4
More4 is the UK's fourth most popular digital service. A channel designed to provide 'provocative, thought-provoking and entertaining programming for grown-ups,' More4 is commercially important because it attracts a 'Smart, upmarket, sophisticated AB(C1) 30+ affluent, well-travelled, cultured, image-conscious and socially active viewer.'
Currently More4 has a 53% ABC1 profile, reaching an average 4.2% of the MCH (multi-channel household) population and attracting an audience of 754,000 ABC1s a day.
Unlike E4, the More4 brand is primarily an extension of Channel 4 (as is apparent from its name) The most watched programmes on the channel are 'ABC1 lifestyle' repeats from C4. More4's 'signature programmes' such as 'The Daily Show' have yet to attract large audiences in their own right. The ability of the channel to attract relatively large audiences for one-off dramas and heavyweight documentaries, however, shows that viewers know and appreciate the channel's approach and understand its relationship with C4.
Whilst audiences tend to be quite small, the channel's ability to attract ABC1 and 'LV' (Light Viewers) make it commercially viable. The channel also demonstrates C4's PSB (Public Service Broadcasting) credentials to the small but very influential 'LV' audience in the same way that Radio 4 and BBC4 does for the BBC. Current More4 trailers use the strapline 'Really Quite Clever' to flatter these 'discerning' viewers. This audience is also going to benefit from the launch of a radio service in 2007; Channel 4's speech-based radio service, 'Channel Four Radio'.
Film4
Film4 is the UK's only free-to-air film service and is the seventh most popular digital channel. Established as a subscription-only channel in 1998, Film4 was launched as a free channel in June 2006. The channel initially proved popular with viewers, as a peak audience of 875,000 tuned in for its first screening, 'Lost in Translation'. Since that time Film4 has continued to bring in big audiences for popular films and UK TV premieres. The Film4 demographic varies considerably according to what films it shows. There is, however, a consistently large male audience for Film4's many 'extreme cinema' offerings. The channel also has an active community based around the Film4 website.
