Sharewatch

Granada fell back by 40p on Friday, after two major announcements rocked the UK’s television industry. Firstly, BSkyB announced that it is to give away the £200 decoder boxes needed to receive its Sky Digital television service (see Digital TV War Intensifies). This will impact on Granada and Carlton’s (down 2˝p) digital terrestrial television service, ONdigital, possibly in the form of costly price war.

Secondly, through a deal with US telecommunications company AT&T, Microsoft has taken a 29.9% stake in UK cable TV and telephony company, Telewest Communications. Through the alliance with Microsoft, Telewest has the technology to drive interactive services such as TV-based internet and TV email and telephony. This, coupled with the expected further consolidation between the cable companies (Telewest is holding talks with Cable & Wireless Communications over a possible merger), puts the cable industry in a strong position in the future of television.

Telewest finished up 3˝p at 289˝p. Cable & Wireless, which releases its finals tomorrow, closed up 21˝ at 832˝p.

The closing prices of media company shares yesterday were: