Five "not sustainable" alone, says parent

Five will not survive unless it merges with another UK broadcaster, a senior executive at the channel's ultimate parent company Bertelsmann has said.

Speaking after Bertelsmann revealed that its full-year net profits dropped 34% in 2008, chief financial officer Thomas Rabe suggested that a tie-up between Five and ITV would be a potential solution.

"We don't think Five in its current form is sustainable," said Rabe. "A transformation of the business or consolidation is necessary.

"A combination of Five and ITV; everybody can agree this does make sense, if we could agree terms and conditions."

He cautioned, however, that Bertelsmann would not consider making any cash investment in ITV. Five's parent company RTL is 90% owned by Bertelsmann.