Channel 4 poaches Paramount’s £300m-plus TV ad sales business from Sky
Summary
Channel 4 has taken over the TV advertising sales for Paramount’s UK channels, including Channel 5, from Sky. This deal boosts Channel 4’s advertising business as it faces major job cuts, while Sky loses a big client just as it tries to buy ITV’s TV and streaming business.Key Facts
- Channel 4 now handles TV ad sales for Paramount’s UK channels, including Channel 5, MTV, Comedy Central, and Nickelodeon.
- Paramount’s streaming services like Paramount+ and Pluto TV are not part of the deal.
- Channel 4 depends on advertising for about 90% of its £1 billion revenue.
- The deal is the first time two public service broadcasters’ ad sales (Channel 4 and Channel 5) are sold together.
- Channel 4 plans to cut around 300 jobs, more than a quarter of its workforce of 1,276.
- Sky lost the business after miscalculations in ad revenue payouts to partners, including Paramount, caused about £300 million in missed payments since 2017.
- Sky has repaid £98 million to Paramount related to these miscalculations.
- The change may affect Sky’s ongoing attempt to get approval for its £1.6 billion takeover of ITV’s TV and streaming business, which would create a dominant player in TV advertising.
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