SBS is launching a fourth free-to-air TV channel which will broadcast multicultural food programs 24 hours a day, taking the number of public broadcasting channels to eight.

Five years after the ABC launched its fourth channel, ABC News 24, the multicultural broadcaster has chosen food content to complete its suite of channels, which include SBS, SBS 2 and NITV.

SBS managing director Michael Ebeid said on Wednesday extensive market research found the audience wanted more food shows – despite the proliferation of cooking shows already airing on free-to-air TV and Foxtel.

Foxtel has a dedicated food channel, LifestyleFood, and some of the most popular shows on commercial television are Seven’s My Kitchen Rules and Ten’s MasterChef.

Ebeid said world movies, documentaries and comedy had all been considered and rejected for a dedicated channel.

Audiences wanted food shows that inspired them in their daily home cooking rather than reality and competitive shows, Ebeid said, and Foxtel was available to less than 30% of the population.

“SBS’s charter drives all the decisions we make,” Ebeid said. “As we face funding pressures and an increasingly competitive market, we need to find new ways to bring audiences the best content from around the world and create a commercial return to continue to fund high quality Australian programs on our main SBS channels.”

SBS lost $53.7m in funding last year as part of the Coalition’s savings drive, and legislation to increase advertising in prime time was rejected by the Senate, leaving the broadcaster with a hole in its budget.

Ebeid said on Wednesday he had not made cuts to programming and staff to fill that hole because he was still in talks with the new communications minister, Mitch Fifield, and was “hopeful” of a resolution.

The government provided $287m to SBS in 2014-15, which represents 75% of its funding, and the rest was made up of commercial revenue from advertising.

SBS 3, which will be named when it is officially launched next month, will be funded by advertising and will be pitched primarily at younger women.

The broadcaster is already known for its food programming, which is a popular genre with advertisers, SBS chief content officer, Helen Kellie, said. The channel was aimed at family cooking but would also feature plenty of programs exploring travel and different cultures, and air programs in languages other than English.

SBS has entered into an output deal and licensing agreement with international producer Scripps Networks Interactive, which produces content for Food Network, Cooking Channel, Asian Food Channel, HGTV, DIY Network, Fine Living Network, Travel Channel and Great American Country.

The Special Broadcasting Service also runs five radio networks: SBS Radios One, Two and Three, SBS Chill and SBS PopAsia.