FilmFour exits the big league

Channel 4 confirmed deep cuts to its FilmFour movie business yesterday in a revamp that destroys its dream of competing with the Hollywood studios.

Most of FilmFour Ltd's 59 staff will lose their jobs in the restructuring, which will reduce the film company to a low- budget core. Distribution and international sales will be closed while the commissioning budget will be cut by two thirds to £10m.

The cuts are a reversal of the plans announced only a year ago to eschew low-budget projects for fewer but bigger movies starring big names. Channel 4 said FilmFour had been unable to become a "meaningful player internationally" against the "sheer scale of the major studios". Mark Thompson, Channel 4's new chief executive, said: "For a British broadcaster like Channel 4, British performance and production talent must come first.

"We are moving away from our recent focus on larger-budget, international projects and towards the kind of cutting-edge British films that have been part of Channel 4's cultural and creative success of the last 20 years."

But a film industry insider questioned the decision to ditch the sales and distribution arms. "You're getting rid of the elements that will make you the money. Production never makes you money. They're lessening the chances of their films getting a release."

John McVay, chief executive of the Producers Alliance for Cinema and Television said making an impact would be difficult on a reduced budget. But he believed the industry was entrepreneurial and would look for work with the reorganised FilmFour.