Five Cuts Program Budget by 25 Percent

LONDON: Five has reduced its programming budget for this year by 25 percent to £165 million in response to the advertising downturn.

This is the biggest percentage reduction in program spend among all the major British broadcasters, press reports reveal. Five’s budget is said to be slightly bigger than Sky1’s, a reported £140 million, but well under Channel 4’s £600 million budget. Dawn Airey, the chair and chief executive of Five, confirmed the reduced budget in a speech at the Broadcasting Press Guild. "We have been incredibly creative with limited resources," Airey is quoted as saying. "We have reduced the budget by a total of 25 percent and we have done it without collapsing ratings or performance. We are doing really well. Don’t write us off."

Airey added that Five had been "really ruthless" in slashing its budget for the daytime and late-night schedules and in renegotiating deals with its content suppliers. She also noted that the broadcaster is eyeing the launch of a preschool digital channel, sharing spectrum with Fiver or Five USA. "The economics of it are quite compelling. It is something we are still actively looking at. I suspect we will make a decision by the end of the year."