BSkyB Set For Controlling Stake In Digital Consortium

A report by stockbrokers HSBC James Capel suggests that BSkyB will have the upper-hand if the British Digital Broadcasting consortium wins the battle for digital terrestrial TV. If the consortium does win, the balance of power will depend on what programming proves to be the key driver for BDB. James Capel think that sport and movies will form a large part of the programming. If they are correct, it is likely that BSkyB will control the platform. If, however, the basic channels drive take-up then BSkyB could be creating a long-term competitor for itself.

If James Capel are correct and BSkyB’s programming takes a major share of the schedules, the report suggests that BDB would be worth 36p per share to Carlton, 37p per share to Granada and 55p share net to BSkyB.

Although the market has dismissed the chances of the rival television network winning the bid, James Capel is not so definite and gives it a 1 in 3 chance.

HSBC James Capel: 0171 621 0011