Channel 4 considers taking out an emergency loan, due to concern around a wider digital advertising slump.
Speaking in front of the Culture, Media and Sport Committee the broadcaster’s chief executive Alex Mahon said it was prepared to use its emergency debt facility worth £75 million.
“We are in what I would call market shock territory. This level of advertising fall has only been deeper during the 2008 recession”.
Highlighting the reasons for the slump Mahon said it was “particularly related to the UK economy” and a lack of “predicted recovery in H2 or Q4”.
“What we see is the linear advertising market is shrinking but the digital advertising market is growing,” she said.
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Earlier this month, a Media Bill including safeguards for Channel 4 content was announced by The Department for Culture Media and Sport. This came after a previous announcement from the government suggested it would like to relax the rules.
Asked about Channel 4’s programme ‘Chris Packham: Is it time to break the law?’ in which Chris Packham considered taking part in disruptive activism which has aired alongside some provocative adverts, she highlighted that there was space for programming to raise important questions.
News of the Channel 4 slump comes after ITV said it would cut back on new shows over the festive period, amid the advertising downturn.
Like Mahon, ITV chief executive Carolyn McCall blamed the slump on “a challenging macro environment”.
