NEW MEDIA: SPOTLIGHT ON 4VENTURES - Channel 4 looks to extend its brand via the digital TV arena.

Thompson wants Channel 4 to strengthen the links with its audience.

One of the first tasks that Mark Thompson embarked upon when he took over as the chief executive of Channel 4 was a total review of 4Ventures, its commercial arm. 4Ventures' results, which were announced last week, show the first fruits of his labours.

Michael Jackson, Thompson's predecessor, founded the division, which includes all of Channel 4's digital and interactive channels, in January 2001. But, according to Thompson, it had grown out of control and, instead of providing additional revenue that could be ploughed back into the main channel, it was a drain on resources. Thompson made the decision to carry out dramatic surgery - the FilmFour production business was closed and a third of the division's total staff lost their jobs. There are few who dispute that, while the closure of the FilmFour production business was a cultural blow, it made business sense.

A new management team was installed under the stewardship of Rob Woodward, who took on the position of commercial director from Andy Barnes, now Channel 4's sales director.

4Ventures' results show the cost cutting appears to have paid off. Turnover was up 20 per cent to pounds 125.6 million while losses had fallen by 53 per cent to pounds 27.6 million. 'It was a year of progress in a tough market,' Thompson says.

Growth was driven by E4, which doubled its share of 16- to 34-year-old viewing in multichannel homes. Successful licensing of Channel 4's products and Channel 4's educational arm, 4Learning, also helped improve fortunes.

Now that the major surgery has taken place, Thompson has announced his plans for reconstruction of the division. 'We may have achieved our short-term goals but we've still got a long way to go,' Woodward confirms.