NatWest Decides Against Subsidizing Digital TV

BSkyB’s digital satellite television service is looking less likely to meet its late 1997 launch date, following National Westminster Bank’s decision to pull out of discussions regarding the subsidizing of Sky’s digital set-top boxes. The move comes after Barclays abandoned similar talks with Sky earlier this year.

The subsidizing of the boxes is felt to be needed to help boost consumer interest in digital television, as the actual £500 cost is considered to high a price to pay for viewers wishing to gain access to the 200 expected new channels.

NatWest had been offered an interactive home banking service as part of the subsidizing deal, but Sky wasn’t offering exclusive terms as it wanted to attract as many potential customers as possible.