A spokesperson for the DTT operator refuted that the company was even ‘considering’ ending the free hardware give-away, although some reports claim to have been given confirmation that this is being considered in the longer term.
ONdigital was effectively forced into subsidising the free receiver equipment for customers when BSkyB introduced the same incentive to increase uptake of its Sky Digital service. Sky now has more than 5.5 million customers; ONdigital has just over a million. It should be noted, though, that Sky was an existing business with a large customer base when it introduced its digital satellite service, whereas ONdigital was developed as a platform and brand completely from scratch.
ONdigital is soon to be renamed as ITV Digital to make the most of the ITV Network’s brand and expertise. The service has suffered a bit of a grilling in recent weeks following the publication of a leaked letter from Granada chairman Charles Allen, which contained troubling views on the state of the business (see Granada Faces Investor Pressure Over ONdigital, Reports FT).
By mid-afternoon stock in Carlton was down 13p at 327½p and Granada down 9½p at 143½p.
