C4's CEO hits back at Sky comments

Channel 4 chief executive Andy Duncan has hit back at Sky's assertion that the broadcaster's decision to pull out of subscription TV services was a costly error.

Yesterday, in a submission responding to communications minister Lord Carter's Digital Britain interim report, Sky said that Channel 4's decision not to renew carriage agreements on a pay TV basis for E4 and Film4 "was a strategic mistake that has left it more exposed in the current downturn".

It suggested that Channel 4 should launch a new bouquet of channels on pay TV to diversify its revenue stream away from a sole reliance on advertising.

In a speech at the FT Digital Media and Broadcasting conference, Duncan replied: "I take issue with comments made by BSkyB. Their numbers are inaccurate. Their analysis is wrong.

"In the last five years, our investment in our free-to-air digital channels - E4, More4, Film4, 4Music - has increased our viewing share by a third.

"They are now more successful than they ever were as pay-TV channels, when we got insufficient revenue from platform operators, including Sky, to make any profits. They now contribute tens of millions to the bottom line each year."

He added: "Sky's proposal to transform our digital channels back to pay is self-serving. Like ITV suggesting that Channel 4 should stop selling advertising. Massive benefit to our competitors. The opposite for viewers."