BSkyB Highlights Possible £500m Savings For ITV

BSkyB is arguing that ITV looks set to miss out on around £500 million savings if it continues to refuse to allow its channels to be carried by BSkyB’s digital satellite service, Sky Digital. The move is the latest development in the battle between BSkyB and ITV, involving ITV’s refusal to join the digital satellite network (see Newsline).

ITV’s two largest companies, Granada and Carlton, jointly own OnDigital, the terrestrial broadcaster which rivals Sky for digital television customers, and therefore regard BSkyB more as a foe than an ally in the digital battle.

BSkyB is arguing, however, that the current ITC renegotiation of its licences gives ITV the opportunity to sign up now for satellite carriage, and the opportunity to win a higher rebate on the flat payment they make every year to the watchdog, worth as much as £194m. Other savings would be made from joining, relating to advertising revenues, of up to £350m. A city analyst claimed that the saving was equivalent to the entire market worth of OnDigital.

As yet ITV is sticking to its guns and has given no indication of joining the digital satellite network. It is due to launch its digital channel, ITV2, on the OnDigital terrestrial network, in November. Sky Digital launches on 1 October.

ITV: 0171 843 8000 BSkyB: 0171 705 3000