BDB On Target For Launch

British Digital Broadcasting has announced that it is on track to launch in the last quarter of this year. It expects to break even at just under 2 million subscribers and will make profits of more than £100m with 3 million subscribers. Profits will rise to over £250m with 5 million subscribers.

Michael Green, chairman of BDB, said: “All television is going digital. The only real question is when. In the future, everyone will have digital television. All broadcasting will be in digital.”

BDB has also selected BT as the key supplier for its new customer management centre. Stephen Grabiner, chief executive of BDB, said that the broadcaster will focus on three key areas that viewers without pay TV want: ease of access to get the service; quality of programming; and “determination to provide value to our customers.”

Grabiner also said that “a simple plug-and-play set top box” is all most people will need to access BDB and he remains confident that there will be no “box wars” with BSkyB (see ITC Attempts To Smooth Set-Top Box Dispute). He is “committed to ensuring that consumers only need one box to receive digital terrestrial and digital satellite programme services.”

Programming will consist of 15 channels at launch, taken from BBC/Flextech, Carlton, Granada and Sky. They will be packaged as 12 core channels, with one, two or three premium channels from Sky. Grabiner added: “In a short number of years the 30 or so channels on offer at launch could increase by 50%. There is also the prospect of introducing more interactive features and services. Our core package of 12 channels will be priced below the entry point of Sky’s current big basic and, indeed, below the price points of many of the recently introduced cable mini-packages.”

In terms of marketing spend BDB says it will be “very significant in the period leading up to launch.” It also has the support of all of the UK’s major broadcasters who will be promoting the new digital terrestrial services on their free-to-air services. This is worth about £100 million in TV advertising spend.

BDB: 0171 819 8120