C4 has decided to make E4 and time-shifted channel E4+1 available in Freeview homes at the end of May to coincide with the start of its flagship reality show Big Brother.
This will give the 4 million Freeview users access to live round-the-clock streaming from the Big Brotherhouse.
E4 will continue to be available as part of the Sky Digital package but C4 will no longer receive any subscription revenue from BSkyB. The channel is also likely to lose per-subscriber revenue from NTL Digital and Telewest Digital cable services.
E4 has been part of the Top Up TV line-up since March 2004 but C4 has served notice of its intention to withdraw the channel from the bolt-on pay-TV service.
C4 chief executive Andy Duncan said new advertising revenue would more than offset lost subscriber revenue. "Freeview is still growing fast and we're forecasting an uplift in ratings and advertising revenues, which we expect to exceed lost subscription revenues," he said.
C4 has four DTT slots - three as gifted capacity and a further one, which it has licensed off Crown Castle for an estimated£5m a year. It plans to launch factual More4 on the fourth slot in October.
"Alongside the launch of More4, taking E4 free-to-air is key to our strategy of extending our presence in multi-channel with a view to funding and strengthening our public service contribution in a fully digital world, across all platforms," added Duncan.
E4 launched in January 2001 with programme such as Banzaiand Trigger Happy TV. In February this year C4 bumped up E4's programming budget from£40m to£60m and appointed head of factual entertainment Julian Bellamy to run the channel.
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