Channel 4 Readies Itself For Analogue Switch-Off
Channel 4 has signed a £55 million digital transmission deal that will allow it to launch a raft on new channels as it moves to strengthen its position in the face on increasing competition from multi-channel broadcasters.
It is understood that the ten year deal with Luxembourg-based SES Global will allow Channel 4 to hire space on the Astra 2D satellite for about 14 channels. However, the number will depend on the use of interactive services, which can take up nearly as much capacity as a broadcast channel.
Channel 4 currently has no plans to launch new ventures on 2D, but the satellite is running out of capacity and the state-owned broadcaster has booked the space as an insurance policy designed to help it see off competition following the switch off of the analogue signal in 2012.
The deal is the third to be signed this week between a British broadcaster and SES Global, the company that provides the backbone for BSkyB’s Sky Digital service. ITV and NTL have also agreed to transmit more services into the UK’s digital homes.
The digital television market is expanding rapidly and more than 53% of British households now receive multi-channel services either through Sky Digital, Freeview or a cable connection. New figures are due to be released later today showing a significant increase in the number of multi-channel homes (see Freeview Continues To Boost UK Digital Up-Take).
ITV is looking to beef up its digital presence with the launch ITV3, a channel for older viewers, in November. It also recently announced plans to roll out raft of new channels over the next five years in an effort to compete more effectively against the BBC. However, the SES deal is not expected to signal an explosion of new launches as ITV uses the new capacity to broadcast more regional services on the Sky Digital platform.
The NTL deal is with the cable group’s broadcast division, which now offers space on the BSkyB platform to smaller channels seeking a place on Sky Digital. The agreement with SES looks set to be a lucrative one for NTL, which will be able to sell the capacity on at a significant premium.
Earlier this week media regulator Ofcom issued a detailed timetable for converting the nation’s television sets to digital by 2012. Britain’s terrestrial broadcasters currently hold analogue licences, but under the Communication Act 2003 Ofcom must offer digital replacement licenses to ensure their survival following the digital switch (see Ofcom Announces Plans For Early Digital Switch-Over).
Channel 4: 020 7396 4444 www.channel4.com
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