Sky to keep ad contract as C4 signs Emap music deal

by Emma Barnett, Media Week 24-Jul-07, 10:15

LONDON - Sky will continue to sell ads on Emap's music stations despite the announcement this week of a joint venture agreement between Emap and Channel 4 to create a music TV service.

Emap has agreed to sell 50% of its music TV business, Box Television, to Channel 4 for £28m, subject to adjustments.
The deal will focus on developing the seven established digital stations, which includes The Hits and The Box, as well as expanding the digital opportunities.

It is hoped that the combination of Channel 4's premium music-based content and Emap's TV brands will lead to increased cross-promotional opportunities across both companies' portfolios.

The confirmation will end speculation that Sky was prepared to take legal action against Emap if it failed to honour its contract, which is due to expire in 2009.
The joint venture comes as Channel 4 prepares to launch three new national radio stations following its win of the second national digital multiplex (Feature, page 24).
Sales director Andy Barnes said Channel 4 has yet to decide how to sell advertising for the stations, but has confirmed that all radio sales teams will report to him.
Channel 4 and Emap have collaborated again on this project, as Emap is a station provider on the second digital multiplex. Emap Radio will be the first to launch in the summer of 2008 with its women's magazine Closer being expanded into a radio service.