RTL Chief Approaches Channel Four Over Commercial Tie-Up

According to Media Guardian the chief executive of RTL, Gerhard Zeiler, has approached Channel Four with a new proposal of commercial tie-ups between Five, which RTL owns, and Channel Four.

 

There prospect of a closure working relationship between Five and Channel Four has once again been risen as the chief executive of RTL, which owns Five, has met with Channel Four to discuss the idea. Gerhard Zeiler has met with Terry Burns, chairman of Channel Four, and incoming new chief executive David Abraham to discuss the idea and areas in which the two broadcasters could work closer together, reports Media Guardian. One such area would be merging the advertising departments for the two channels into one – selling airtime for both channels. However, if this were to happen although it could mean savings in terms of job losses it could be difficult for the two companies to successful persuade advertises to do business with them are the channels are aimed at different audiences. Also it would most likely result in an enquiry from the competition commission.

 

 

However, while the possibility of a merger between the two was also raised again, according to Media Guardian, it doesn’t look any closure to becoming a serious possibility. There are factions within Channel Four that would favour a merger with Five but there are also those within the broadcaster who would prefer a merger with BBC Worldwide instead. The idea of merging the two broadcasters has been discussed several times before but has never amounted to much because of opposition. RTL is keen to merger its British operations with another company and also mooted merging with Five with ITV at one point – although ITV has been the subject of several mergers/take-over bids such as Virgin Media’s proposed bid which lead to Sky purchasing shares in ITV to prevent it.