ITV To Join BBC In Launch Of Free Satellite Service

However, ITV’s involvement in the new venture will also enable it to broadcast its portfolio of channels ‘in the clear’, circumventing the current encryption charges made by BSkyB for ITV’s inclusion on its satellite platform.

ITV recently complained to industry regulator, Ofcom, over Sky’s charges, although the complaint was dropped last month.

The announcement, made as part of ITV’s interim results this morning, outlined the service’s initial offerings, which will include all ITV and BBC free-to-view digital services, including digital television, digital radio, electronic programme guide, and interactive services as well as dozens of other free-to-air channels. The project aims to be operational within the first half of 2006.

Charles Allen, chief executive of ITV outlined the need for the new service, stating: “As the UK’s largest and most popular commercial broadcaster we want our channels to be available to as many people as possible, regardless of technological and geographical constraints. As we move from an analogue to a digital environment, Freesat – and Freeview – will enable every family in the UK to enjoy a wide range of quality channels for free.”

He continued: “Today’s announcement significantly strengthens ITV’s digital presence and we are delighted to be taking a leading role in the marketing and development of free digital television.”

BBC director general Mark Thompson welcomed ITV to the venture, stating: “This is great news for viewers. It paves the way to provide subscription-free digital television across the whole country. The huge success of Freeview, already in more than five million homes, demonstrates how highly free digital television is valued by many people.

“Our long-stated aim has been to bring about an open market in subscription-free satellite services so we can ensure free access to all the BBC’s services across the country in the run-up to switchover and beyond.”

This morning also saw ITV announce the creation of two new technology-driven products, with a mobile portal and broadband trial designed to grow consumer revenue outside free-to-air advertising.

ITV Mobile will offer video highlights and made-for-mobile footage from ITV’s most popular shows, including This Morning, Coronation Street, and I’m A Celebrity, Get Me Out Of Here!, as well as news, sport and weather alerts.

The new service will also enable viewers to plan a complete TV guide on their mobile, and never miss a show thanks to a reminder service.

The broadcaster’s broadband service, dubbed ITV Local, will begin on a trial basis in the next few weeks, offering a “local television interface” for viewers in the Brighton and Hastings areas. Created by ITV’s newly established consumer division, ITVC, the service will offer local news and weather, community activities, travel and property advertising, as well as ITV entertainment content.

Jeff Henry, chief executive of ITVC, said: “These two initiatives demonstrate the strength of ITV at both a macro and micro level. Twenty years ago the level of TV interaction with viewers was – ‘send us an answer on a postcard’ – today we are able to capitalise on the technological developments of digital television and other devices. Our new mobile portal and our broadband trials demonstrate that ITV has a clear vision and strategy to deliver commercially focused applications to consumers.”

ITV’s decision to work with the BBC on the launch of Freesat comes just weeks after calls from lobby group Voice of the Listener & Viewer (VLV), which claimed the creation of such a system would ensure a competitive market for digital satellite services for the first time.

The new platform looks likely to expand quickly, with other public service broadcasters likely to join in the future. Speaking at the Edinburgh International Television Festival last month, Channel 4 chief executive Andy Duncan stated: “If a free satellite platform develops then Channel 4 wouldn’t want to miss out on that the way we missed out on Freeview, but a lot depends on what the BBC and ITV do first” (see Channel 4 Must Plan For Digital Switchover).

However, this morning saw the broadcaster issue a trepidacious statement, welcoming Freesat’s creation, but abstaining from any direct involvement. “We will watch how Freesat develops with interest,” a Channel 4 spokesman said. “However, we have carriage agreements for all our channels with Sky Digital and we have a number of years to run on these deals. We’re happy with our current distribution deals with Sky and have no present plans to review these arrangements.”