SBS hopes food channel will boost revenue

The SBS managing director hopes a new food and culture channel will help fill the hole left by a cut in government funding.

SBS is still working out where it will make cuts to fill a government funding hole, but it hopes a new food and culture channel will help.

In June parliament rejected the government's plan to ease advertising restrictions on the public broadcaster, which would have produced an estimated $28.5 million in additional revenue.

Instead SBS now has to find savings, which include $4 million from this year's budget.

That's on top of a further funding cut of $25 million.

Managing director Michael Ebeid says he's trying to minimise any affect cost saving measures will have on services.

But when asked by Labor senator Sam Dastyari asked whether they would have an impact, he replied: "It would definitely have to".

The broadcaster is holding back on some commissioned television productions and continues to lobby the federal government.

Mr Ebeid hopes to take a plan to a board meeting in December.

Communications Minister Mitch Fifield said the government had been talking with SBS.

"The government is considering a range of options, but I can't really take it any further at this stage," he said.

On Thursday SBS will reveal when it will launch its new food channel, some time before Christmas.

There will be "zero" product placement, because 90 per cent of the content will be acquired from overseas.

Mr Ebeid said he would love to have more local content, but it was more expensive and would depend on the channel's success.

It will be cost-neutral in its first year, but in time he hopes the channel will help plug the revenue hole.

He refused to say by how much for fear of his competitors knowing.


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Source: AAP



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