BSkyB To Launch Free-To-Air Satellite Package
BSkyB has announced plans to launch a free-to-air satellite package of more than 200 television and radio channels in an attempt to compete with the BBC-backed Freeview service.
The satellite broadcaster says it will launch the new satellite proposition later this year alongside a premium package of services in the high definition television format for launch in 2006.
Viewers will have to pay £150 for the purchase and installation of a Sky digibox, but there will be no subscription charge or monthly fee for the free-to-air service. Customers will also be given the option of upgrading to a series of pay-TV options alongside the basic free-to-air channels.
The basic package will include the full line-up of existing analogue channels, as well as digital offerings from the BBC, ITV and Channel 4. Free-to-air viewers will also receive News 24, CNN and a range of other branded services.
The move is the brainchild of the BSkyB chief executive, James Murdoch, who said: “These initiatives are another step in giving consumers a choice from Sky that suits their needs at the top and lower ends of the scale. They will help drive even greater take-up of digital television services and enable Sky to enjoy a close relationship with even more customers.”
BSkyB, which launched its premium satellite service more than ten years ago, has been under pressure to enter the free-to-air television market since the launch of the BBC-backed Freeview service two years ago.
Freeview has enjoyed phenomenal success and the latest figures from Ofcom show that the digital terrestrial service saw uptake rise by more than 18% in the first quarter of this year to around 3.5 million households (see Freeview Continues To Boost UK Digital Up-Take).
Murdoch hopes his new free-to-air offering will help persuade large numbers of digital refuseniks to make the switch to multi-channel television. He claims the service will boost the Government’s chances of turning off the analogue signal by providing an attractive means of going digital for the 27% of households, which are currently unable to receive digital terrestrial television.
The move looks set to be welcomed by media regulator Ofcom, which recently published a report claiming that the lack of a viable free-to-air satellite service was one of the main barriers to digital switchover (see Government Set To Miss Deadline For Digital Switch).
In a separate initiative, BSkyB has also unveiled plans to develop a premium package of channels in the high definition television format. The service will launch in 2006 with a set of dedicated high definition channels and access to selected events produced in HD format.
Earlier this year Murdoch shelved plans for the launch of a new general entertainment channel on the Freeview platform. He claimed that BSkyB should not allow itself to be distracted from its core aim of developing pay television in the UK (see BSkyB Shelves Plans For New Entertainment Channel).
BSkyB: 0207 705 3000 www.sky.com
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