Channel 4 could scrap the subscription on its premium FilmFour service and put the movie channel onto Freeview next year.

Such a move, which would see the FilmFour go from 400,000 subscription homes to 15m homes with digital TV, is being considered by the Channel 4 chief executive, Andy Duncan, but no decision has been presented to the board.

Mr Duncan is mulling several options about how to use the channel's Freeview capacity but believes there is a gap for a film channel even though ITV2 and ITV3 frequently screen movies.

If Channel 4 decides to make changes it must approach Sky and negotiate to take FilmFour off the premium platform.

The most likely option is to find a slot on Freeview for the channel, which shows a diet of British classics and modern American and European films.

Films on the channel are screened uninterrupted by advertising, but that could change if the subscription, which costs £7 a month for Sky viewers, is removed.

Seven years after its launch, FilmFour has started to make a modest profit but Channel 4 has decided it cannot make a vast amount of money from the service under its subscription model.

If the channel moves to Freeview Channel 4 might introduce advertising to make up for the revenue losses.

Digital channel E4 moved from subscription to Freeview in May and was rewarded with a doubling of its audience share, thanks in part to Big Brother.

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