Broadcaster hopeful it can iron out differences with Virgin Media to secure maximum distribution on digital platforms

Channel 4 is aiming to launch a new TV service that would allow viewers to catch repeats of its best shows from June, if it can iron out differences with Virgin Media to secure the final deal needed for maximum distribution on digital platforms.

The new channel, referred to internally as Project Shuffle, will allow viewers who missed the first live broadcast of Channel 4's most popular shows multiple opportunities to catch up with them over the next seven nights.

Sources with knowledge of the plan are quick to distance it from suggestions that it will be like Gold, the UKTV-subscription service that repeats archived shows such as Only Fools and Horses.

"In the old days, repeats were bad things – but you have to remember that this is not just an attempt to make a UK Gold, this is new, popular stuff just transmitted in the UK," said one source familiar with the plan.

The launch date for the new channel has not yet been confirmed but it is understood June is currently the most likely target, although it is thought that Channel 4 would like to have it on air earlier.

Two media industry sources said they understand that Channel 4 has lined up a Freeview slot for the channel and it is thought a deal with BSkyB has also been reached.

However, talks with Virgin Media are understood to have been more difficult, with the cable operator said to be wary about giving the green light to a channel that could provide direct competition to its own catch-up TV offering.

One source with knowledge of Project Shuffle said it is "a tiny bit like Sky Anytime but more really the equivalent of staggercast or video-on-demand on your TV, delivered as scheduled viewing".

Channel 4 is understood to be testing a range of names for the proposed service – including Channel 4 Squared, Channel 4 Plus Two, Channel 4 Two, Channel 4 Too and even Channel 4 Shuffle, after the project's working title.

The broadcaster has started pitching the idea to media buying agencies with early reports suggesting that the concept has been greeted enthusiastically as something that advertisers will be keen to back.

"Advertisers are genuinely pleased with the opportunity, there is certainly demand for it," said another source with knowledge of the plan.

"Too quickly, too often this stuff falls off our screens. This gives an opportunity to re-engage with the big stuff that people want to watch on a TV screen. It gives two or three more bites at the electronic programme guide."

The proposed channel will significantly help the broadcaster by offering more advertising inventory around popular shows to shore up the flagship Channel 4 network's audience share.

"If there is something like a Sherlock or a major show on a commercial rival then Channel 4 takes a big hit," said a source.

"If light viewers miss an episode, especially the first, they tend to go away so this is a clever idea to keep them engaged in the prime window after first broadcast and it shouldn't cannibalise the main channel."

According to media buying agency sources, in 2011 the main Channel 4 station was down 9.6% year on year on commercial impacts among 16- to 34-year-olds – the demographic the broadcaster has built its reputation on and charges advertisers a premium to reach.

Channel 4 is forecasting that if the new channel gets the go ahead it will boost commercial impacts by about 7% to 10%, or around one percentage point of its overall share of commercial impacts.

Commercial impacts are the key currency by which airtime sales team negotiates ad deals with media buying agencies on behalf of advertisers.

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