Channel 4 has blamed declining advertising revenues and higher spending on digital TV for a 70% decline in its profits to £14.5 million in 2006.
The group, which released its annual report today, increased spending on programmes from £573 million to £608 million, with £125 million of the total spent on annual entertainment shows like Big Brother.
Channel 4 director of television Kevin Lygo indicated that its spend on US imports like Ugly Betty will be the first area to be cutback.
The channel's acquisitions spend rose from £112.9 million in 2005 to £127.2 million last year, but the number of programming hours such shows took up fell from 3,382 to 3,278.
Well its been coming for ages, Ofcom recently reported that by 2011 Channel 4 will be running completely off savings as they will not even be breaking even.
So it looks like its true and they will probably go out of business in the next 5 years. Digital Spy Report