RTL writes down value of Channel 5

RTL may be satisfied with its results but the news that it has halfed the value of Channel 5 television in its blance sheet will raise worries about the state of the UK independent TV market.

The Group announced that its revenue in 2009 was down 6.3 per cent to €5,410 million with profits down 17 per cent which included restructuring costs in the UK, Germany and Greece totaling €34 million, and a significant programme write-down at Five amounting to €22 million.

According to Media Guardian,

after several years of growing its share of the UK TV ad market Channel Five's share dropped from 9.6% to 8.4%.

TV advertising no longer sustainble

The head of one of Europe's biggest TV stations believes that advertising will no longer sustain television's revenues.

Gerhard Zeiler, chief executive of RTL will tell delegates at Edinburgh’s International Television Festival that

Free broadcasters need to look into paid alternatives and consolidate. reports the FT this morning and adds that

Free television remains important for advertisers; millions of viewers still tune in to watch hit shows. But there is a need to explore alternatives. Paid channels focused on sport or film, and micropayments for video on demand, are two possibilities.