ITV Signs Digital Satellite Deal

ITV took its first step towards carriage on BSkyB today after agreeing a capacity deal with satellite operator Societe Europeenne des Satellites (SES). The network has been given capacity to broadcast on three digital satellite transponders for a period of 10 years.

In an battle which has been ongoing since the launch of Sky Digital (see Sky’s Digital Service Will Go Without ITV Channels), ITV has refused to allow Sky to carry its channels on the platform in an attempt to prevent the satellite broadcaster from “dominating the future of digital television (see ‘BSkyB Is Trying To Dominate The Future Of Digital Television’, Says ITV Chairman).” The move backfired on the network however when audiences for its channels within Sky Digital homes began to fall – viewers have to manually switch back to the analogue signal to watch ITV stations (see ITV Slips While Non-Terrestrials Improve In Digital Television Homes) – and the cost to ITV of not being on satellite is now worth around £8-10m per quarter, according to analysts ABN Amro.

Today’s deal will give ITV capacity to accommodate up to 8 channels across each of the three transponders, with the ability to secure further capacity in the future. The network is planning to broadcast 16 regional services on satellite, comprising the 14 ITV regions and separate services for HTV Wales and HTV West and Border Scotland and Border England, and plans for other services will be confirmed at a later date.

It is hoped that ITV will be able to launch on satellite by the end of this year, following the agreement of terms with an uplink provider such as Sky or NTL. ITV is now likely to open up carriage negotiations with Sky again. The two recently clashed over the cost of Sky’s conditional access system, which ensures that regional viewers receive appropriate broadcasts, and its rate card pricing system (see Sky Asking £20m For Carriage, Says ITV).

The cost of the deal is believed to be around E10m.

Commenting on the agreement, Yves Elsen, commercial and marketing director of SES stated: “This is exciting news for the 4.7m digital satellite homes in the UK. Given ITV’s emphasis on regional programming, this decision to launch on ASTRA highlights the important role satellite can play in delivering local as well as pan-European services. We believe that ITV’s programming pedigree will further accelerate the demand for digital satellite services in Britain.”

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