Emap, Channel 4 in Joint Venture Agreement

LONDON, July 23: Channel 4 is working with Emap to create a
leading music TV provider, with the British broadcaster acquiring 50 percent of
Emap’s music TV business, Box Television, for £28 million.

The joint venture will operate and expand the seven channels
currently run by Box Television, and will look to exploit new and emerging
digital growth opportunities. It will benefit from the combination of Channel
4’s premium music-based content and expertise in digital channel and platform
management and Emap TV’s brands and distribution. Channel 4 and Emap will have
equal representation on the joint venture’s board. The venture will sit
alongside Channel 4’s existing portfolio of digital services including E4,
More4 and Film4.

Emap acquired The Box music channel in 1996 for £6 million
and expanded it to include a portfolio of offerings: The Hits—the U.K.’s
most-watched music TV channel, according to Emap—The Box, Smash Hits,
Kerrang!, Q, Kiss and Magic. Emap’s
music TV business has been adding to its portfolio of interactive and on demand
services and is the exclusive provider of music videos to BT Vision.

Channel 4, meanwhile, operates the 4Music brand, with more
than 750 hours of programming broadcast annually including coverage of major
festivals such as V, 02, Isle of Wight and Download. 4Music also covers a broad
range of online activities.

Andy Duncan, Channel 4’s chief executive, said: “This is a
strategic investment for Channel 4 designed to generate significant revenues
that can be reinvested in supporting our public-service activity longer term.
Music is an important part of Channel 4’s strategy for future growth and we
intend to further strengthen our cross-platform presence with the launch of
three 4-branded radio stations from next year. We are already partnering with
Emap in radio and are delighted to be extending that relationship into
television and onto other digital platforms as we look to build on Channel 4’s
strong heritage as a leading broadcaster of music programming.”

Paul Keenan, the chief executive of Emap Consumer Media and
executive director of Emap, added: “This alliance between Emap and Channel 4
will enable us to increase our brands presence on new and emerging platforms,
including video on demand, opening up new opportunities outside of the
traditional linear broadcast market for both audience and revenue growth. Emap
and Channel 4 are likeminded partners and together we make a formidable force
in an otherwise fragmenting and challenging market.”