BBC’s Free-To-Air Satellite Proposal Hits Brick Wall
The BBC’s plan to launch a free-to-air digital satellite platform to rival BSkyB’s Freesat service has hit a brick wall after Channel 4 signed a three year contract extension for access on Sky.
ITV is currently in negotiations with BSkyB and is expected to extend its existing carriage deal with the satellite broadcaster, while Channel Five still has four years remaining on its contract.
Of the main terrestrial channels, this would leave only the BBC portfolio on the Corporation’s proposed fee-to-air satellite service. If the initiative is to get off the ground, the BBC must begin lobbying ITV to abandon Sky in favour of its proposed Freesat service.
Channel 4 has signed up to Sky until the end of 2007 to run its pay-TV channels E4 and FilmFour, as well as its new digital channel More4 for older viewers, which is due to launch early next year (see Channel 4 Plans Digital Offering For Older Viewers).
It is understood that Channel 4 was concerned about the continued availability of its services on the Sky platform, if it agreed to join the BBC’s planned Freesat venture. Channel 4 saw its weekly share of viewing in digital households rise by 1.1% during May to 6.7% (see Digital Television Round-Up – May 2004).
Channel 4’s commercial director, Rob Woodward, said: “The availability of our digital channels across the Sky platform has been a key factor in their success and we believe that continuing to deliver them to Sky’s growing customer base is the best way of ensuring their continued growth.”
BBC is also understood to be talking to BSkyB about how the two might work together on the satellite broadcaster’s own free-to-air offering, which is due to launch later this year for a one-off payment of £150 for the purchase and installation of a Sky digibox (see BBC Contemplates Taking On BSkyB With Satellite Service).
The new satellite offering looks set to significantly boost the Government’s chances of turning off the analogue signal by the current 2010 deadline by providing a means of going digital for the 27% of households, which are currently unable to receive digital terrestrial television.
BBC: 020 8743 8000 www.bbc.co.uk
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