Channel 4 takes stake in digital magazine service Readly

UK broadcaster Channel 4 is taking a minority equity stake in the all-you-can-read digital magazine provider, Readly.

The airtime-for-equity deal, struck between Readly and Channel 4’s Commercial Growth Fund, will see the broadcaster take the stake in exchange for airing Readly’s first TV advertising campaign across its linear channel network.

“We are impressed by Readly’s strong value proposition to consumers and the company’s entrepreneurial ambition,” said the head of Channel 4’s Commercial Growth Fund, Vinay Solanki.

“We believe their innovative business model will benefit from TV advertising exposure across our network enabling them to access our core young upmarket audience, to help this business grow their foothold in the UK digital subscription market,”

Ranj Begley, managing director, Readly UK, said: “With Channel 4 as a partner, we have a mainstream TV presence and the opportunity to scale up our audience much more rapidly than we had originally forecast.”

Channel 4’s Commercial Growth Fund launched last year and the scheme allows brands to “accelerate their growth through TV promotion”. The fund has already made partnerships with digital music service Deezer, tonic water company Fever-Tree and the recruitment app Jobandtalent.

Readly gives users unlimited access more than 1,500 digital magazine titles for a £7.99 per month subscription fee.