Channel 5 faces job losses as Sky and Viacom renew deal

Sky and Viacom International Media Networks has renewed the deal that sees a raft of channels including MTV, Nickelodeon and Comedy Central carried on the UK pay TV platform.

Sky will sell free-to-air broadcaster Channel 5’s advertising as part of the new agreement, which secures carriage for the Viacom pay TV nets for five more years.

Sky handles ad sales for the channels and the new deal will see it take on ad sales for Channel 5 and its spin-off channels, following the acquisition of the free-to-air services by Viacom last year.

Viacom confirmed the reworked ad agreement means there will be an unspecified number of  job losses its in-house team, which handled ad sales previously.

“Not all roles will go, some will be integrated back into Channel 5,” a spokesman told DTVE sister title TBI. “However majority of team will be made redundant.”

The new advertising arrangement kicks in this June. It also covers sponsorship, digital and on-demand sales, which will also be sold by Sky Media.

“We’re delighted to extend our relationship for the benefit of our viewers and advertisers,” said David Lynn, president, VIMN UK, Australia and eastern Europe.

“We’re convinced Viacom’s interests are best served by a single point of advertising sales in the UK and Ireland and that Sky Media, with its strong track record of selling our pay TV channels and its innovative approach to improving the targeting and effectiveness of TV advertising, is best placed to provide it.”

Andrew Griffith, CFO and MD, commercial businesses, Sky, said: “The extension of our partnership with Viacom is great news for Sky customers as well as advertisers. The addition of Channel 5 will further strengthen Sky Media’s extensive channel portfolio.”