Business 2 min read By Morgan Griffin
Channel 5 Profits Fall by $32 Million as Streaming Costs and Weak Ad Market Bite
Skydance-owned UK network Channel 5 reported a sharp drop in annual profit for 2025, blaming heavy investment in streaming and a difficult advertising market.
Channel 5, the British broadcaster owned by David Ellison's Skydance, saw its profit fall by £24.5 million ($32 million) last year as the company poured money into streaming and faced a weak advertising market.
The network recorded a profit of £8.3 million for the year ending December 31, 2025, after tax and interest, down from £32.8 million the previous year. The figures, filed at Companies House, show a decline of roughly two-thirds.
Pre-tax profit stood at £11.93 million ($15.8 million) in 2025, compared with £33.6 million a year earlier — a 64% drop. The company said the decline reflected inward investment in its streaming operations and a tough environment for television advertising.
Channel 5, previously known as Channel 5 Broadcasting, sits within Skydance's expanding media empire following Ellison's acquisition of Paramount Global. The network has been pushing to build its streaming platform, My5, as viewers shift away from traditional linear television.
The results highlight the pressure facing free-to-air broadcasters in the UK as advertising revenue remains soft and competition from global streaming giants intensifies. Channels are being forced to spend heavily on digital platforms even as their traditional revenue streams decline.
Channel 5's profit drop mirrors challenges across the UK television sector, where broadcasters are balancing the need to invest in on-demand services with the reality of a sluggish ad market. The company has not indicated any change in strategy, suggesting the streaming investment is seen as necessary for long-term survival.
For Skydance, the performance of Channel 5 is an early test of its stewardship of traditional broadcast assets. The network remains a significant player in British television, but its financial results underscore the difficult economics of the sector.
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