British public service broadcaster Channel 4 announced it will shutter its interactive and mobile advertising units. "Over the past 12 months we have seen a steep decline in demand for interactive TV advertising and it is with regret that we are closing this area of business," said a Channel 4 spokesman. Beginning Dec. 31, the broadcaster will no longer offer so-called "red-button" interactive ads and will also terminate ad sales around its mobile content efforts--at present, Channel 4 produces a 20-minute continuous loop of short-form television content for broadcast across the major U.K. mobile operators, presenting ad-supported clips and segments from series like Hollyoaks, Grand Designs and Supernanny. While Channel 4 will continue producing the mobile segment, it will no longer feature ads as of 2009. Media Week reports Channel 4 is nevertheless open to relaunching its mobile advertising efforts in the event of increased consumer demand for mobile content. The decision to close the interactive and mobile ad divisions is part of Channel 4's ongoing cost-cutting drive, targeted to trim £100 million ($156 million U.S.) over the next two years.
For more on the Channel 4 cuts:
- read this BrandRepublic article [1]
Links:
[1] http://www.brandrepublic.com/News/860759/Channel-4-close-red-button-mobile-ad-sales-operations/