[CMA TV] ITV and BBC take on Sky with Freesat launch

[Michelle McGuire]

ITV and BBC take on Sky with Freesat launch

Chris Tryhorn, City correspondent
Wednesday September 7, 2005

ITV and the BBC are to launch a free digital satellite service in a  
long-anticipated move to take on market-leading pay-TV company BSkyB.

The broadcasters said today they were working together to develop a  
Freesat service that would "complement" Freeview, the digital  
terrestrial service that has been sold to more than 5 million homes.
Freesat will be aimed at the 25% of UK households that cannot receive  
Freeview and is aiming to be operational in the first half of next year.

The new service will compete with Sky's own Freesat service, which  
launched in October offering 120 TV channels and 80 radio stations  
for a one-off installation charge of £150.

Sky is also the market leader in pay television, with 7.8 million  
subscribers to its Sky Digital satellite service that gives access to  
premium channels.

ITV - which announced a rise in revenues and profits as it unveiled  
first-half results today - also said it would start broadcasting all  
its channels "in the clear", following the BBC's lead in dispensing  
with Sky's encryption services.

The new Freesat service will showcase all of ITV's digital channels  
along with those of the BBC and other broadcasters.
Charles Allen, the ITV chief executive, said the company wanted its  
channels to be as widely available as possible.

"As we move from an analogue to a digital environment, Freesat - and  
Freeview - will enable every family in the UK to enjoy a wide range  
of quality channels for free," he said.

The BBC director general, Mark Thompson, said: "We welcome ITV's  
intention to take all its channels into the clear on satellite, and  
also welcome them as partners in the project to develop a consumer- 
friendly, subscription-free satellite proposition.

"This is great news for viewers. It paves the way to provide  
subscription-free digital television across the whole country.

"Our long-stated aim has been to bring about an open market in  
subscription-free satellite services so we can ensure free access to  
all the BBC's services across the country in the run-up to switchover  
and beyond."
ITV also announced today a new mobile service allowing users to  
access footage of favourite shows as well as a broadband trial in  
Sussex.

In its interims results statement, the company said its pre-tax  
profit before goodwill amortisation and other items for the six  
months to the end of June was up 60% from last year to £205m. Revenue  
before joint ventures increased by 9% to 1.044bn. Total advertising  
revenue was up 3.4%, but advertising at flagship channel ITV1 fell 3.5%.

ITV said the advertising market was improving in the third quarter of  
the year, and it expected total advertising spending to increase by  
4.3%.

-
Source: Media Guardian
http://media.guardian.co.uk/broadcast/story/0,7493,1564344,00.html


-- 
Michelle McGuire
Editor, Airflash Magazine
Development Officer

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