Key facts
- Channel 4 will now handle TV advertising sales for Paramount's Channel 5, MTV, Comedy Central, and Nickelodeon.
- The deal does not include ad sales for the streaming service Paramount+ or Pluto TV.
- Channel 4 relies on advertising for approximately 90% of its 1 billion in revenues.
- Channel 4 is cutting 340 jobs, representing more than a quarter of its workforce.
- Sky paid Paramount 98 million due to past miscalculations in ad revenue payments.
Channel 4 has secured a significant deal to handle the TV advertising sales for Paramount's Channel 5 and its UKTV channels, including MTV, Comedy Central, and Nickelodeon. This move is a substantial boost for Channel 4, which relies heavily on advertising revenue, accounting for about 90% of its 1 billion in annual income. The agreement comes shortly after Channel 4 announced it would cut 340 jobs, more than a quarter of its workforce, in its largest round of job reductions to date.
The partnership marks the first time that advertising sales for these two public service broadcasters will be managed together. However, the deal does not encompass ad sales for Paramount's streaming service, Paramount+, or the free streamer Pluto TV.
Channel 4 chief executive Priya Dogra hailed the partnership as a "tremendous proposition for advertisers," emphasizing the combined strength of public service broadcasting and offering seamless access to a unique portfolio of brands and larger audiences. Reemah Sakaan, president of Channel 5, called it a "historic partnership between two British broadcasters."
The loss of this business is a blow to Sky, which previously handled Channel 5's ad sales. It may also impact Sky's efforts to gain regulatory approval for its 1.6 billion takeover of ITV's TV and streaming assets, as the combined Sky-ITV entity would have controlled over 70% of the traditional TV ad sales market. Sky and ITV have argued for a broader market definition to reduce this concentration.
Separately, Sky has paid Paramount 98 million in relation to miscalculations in ad revenue payments that occurred between 2017 and when they were uncovered, affecting partners like Paramount and Channel 5.