BBC And BSkyB Set To Take Digital Disagreement To ITC
The BBC looks set to take its dispute with BSkyB over a satellite broadcasting deal to the regulators after talks between the two broadcasting giants collapsed last week.
BBC recently announced its intention to withdraw from the BSkyB service to begin broadcasting to Sky’s 6.6 million viewers from a different satellite, in a move that will save the Corporation £85 million in fees over five years (see BBC Terminates Sky Carriage Deal).
However, BSkyB has warned that the decision to withdraw from the “conditional access” service would result in BBC1 and BBC2 losing their prominent 101 and 102 positions on its electronic programming guide (EPG). Many believe that relegation to the lower end of the EPG would damage the BBC’s viewing figures in Sky homes.
The BBC met with BSkyB last week to negotiate the cost of keeping its channels listed in their current position on the EPG. However, it is understood that talks broke down after BSkyB refused to provide conditional access services without payment (see BBC Seeks Satellite Listings Agreement With Sky).
A spokesman for the BBC said that the Corporation would take its case to the Independent Television Commission if BSkyB went ahead with its plans. He said: “The ITC regulations state that BSkyB has to give us a position of due prominence on the electronic programming guide. If they try to move us to the lower end of the EPG we will appeal to the regulators.”
It has been suggested that BBC’s decision to pull out of the conditional access satellite carriage agreement is unlikely to have any material effect on the satellite broadcaster. However, figures put the carriage revenue from BBC, ITV, Channel 4 and Five at £25 million a year and it is possible that the other terrestrial channels will follow the BBC’s example and end their contracts (see BBC Seeks Satellite Listings Agreement With Sky).
The latest figures from the ITC suggest that digital television penetration is on target to exceed internet penetration in the UK if current growth rates continue (see ITC Cable Statistics Q4 2002).
BBC: 020 8743 8000 www.bbc.co.uk BSkyB: 0207 705 3000 www.sky.com
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