BSkyB Launches Freesat To Rival Freeview
BSkyB has launched its free-to-air digital satellite package, Freesat, offering viewers more than 200 television and radio channels for a one-off payment of £150.
The service, unveiled by BSkyB chief executive James Murdoch, is being seen by many as an attempt to rival the success of the BBC-backed Freeview platform, which has gone from strength to strength since its launch two years ago.
Freesat has been launched with little fanfare by BSkyB, as the company continues to focus on its pay-TV business. However, the company hopes that the absence of of a subscription fee will tempt new customers who may eventually switch to its premium services.
Those opting for Freesat will get a digital set-top-box and a satellite dish with free installation for a one-off payment. The new service will initially only be available directly from BSkyB, unlike Freeview which is sold in high-street retailers such as Dixons and Currys.
Freeview currently offers viewers around 50 free-to-air channels for the price of a set-top-box, which can cost as little as £50. BSkyB is clearly attempting to outgun its digital terrestrial rival with a package of 140 television channels, 80 radio channels and 13 interactive services.
Commenting on the launch, a spokesman for BSkyB said: “We think it is a really good offer for customers. It is not part of our core business. We will continue to focus our marketing efforts on the promotion of our pay-TV services.”
BSkyB, which launched its premium satellite service more than ten years ago, has been under pressure to enter the burgeoning free-to-air television market since Freeview took off. The digital terrestrial service saw uptake increase by 12% in the second quarter and is now available in nearly four million households (see Digital Penetration Increases As Deadline Looms).
Murdoch insists he does not see Freeview as a threat, but will no doubt be alarmed by the recent slowdown in the numbers of subscribers to its pay-TV services. The satellite broadcaster is still on track to reach its target of 8 million customers by 2005, but investment bank UBS Warburg estimates that it will add just 41,000 to its subscriber base in the three months to September, a figure well below expectations (see Sky On Track To Reach 8 Million Homes By 2005).
BSkyB: 0207 705 3000 www.sky.com
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