British Sky Broadcasting(BSkyB) today announced plans to drive demand for digital satellite television through initiatives that will address free-to-air and premium pay-TV audiences.
Speaking at an investor conference in London, James Murdoch, Chief Executive of BSkyB, said later this year the company will introduce a free-to-air satellite proposition that will support the Government’s proposed switchover to digital-only broadcasting since it will provide an additional subscription-free option for viewers not currently attracted to pay-TV.
Giving access to almost 200 television and radio channels and interactive services, viewers will be able to purchase a package of reception equipment for a one-off cost of £150. Viewers, however, will be under no obligation to subscribe to a pay-TV service and there will be no monthly fee.
It is anticipated that this new free-to-air proposition will provide an accessible and attractive means of ‘going digital’ for the 27% of UK households currently unable to receive the full range of digital terrestrial television services.
The move looks set to be welcomed by media regulator Ofcom, who recently published a report claiming that the lack of a viable free-to-air satellite service was a key barrier to digital switchover (see Digital TV Take-Up Will Fall Short Of 2010 Deadline).
The BBC-backed Freeview service has experienced phenomenal success, helping drive the number of multi-channel homes to 13 million in the first quarter of 2004 (see Multi-Channel Television Statistics Q1 2004). Free-to-view households have grown by 18% to 3.6 million households.
In a separate initiative, BSkyB also unveiled plans to develop a premium package of channels in the High Definition Television(HDTV) format. Launching in 2006, the service will deliver significantly superior picture quality and should appeal to viewers who seek to enhance their in-home audio visual experience.
Back in May, the satellite broadcaster reported, along with third quarter results, that subscriber growth hadn’t met expectations, as it slowed to 66,000 net new subscribers over the period. This was below the average of 100,000 a quarter needed if BSkyB were to meet its target of eight million direct to home (DTH) subscribers by the end of 2005. BSkyB claimed that this reflected the company’s decision to pull back on marketing while it assessed the Christmas marketing push (see Text Messaging Reaches Record Levels During 2003).
Related Links
