[opendtv] News: Sky takes on Freeview
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 9 Jun 2004 16:35:01 -0400
We have known that this was coming for some time.=20
But the offer is better than expected. This is=20
the kind of power that cable and/or DBS can exert=20
if they are seriously challenged...
Regards
Craig
Sky takes on Freeview
For the first time BSkyB is abandoning its=20
all-pay service and going after viewers who have=20
never bought into subscription TV. BSkyB is=20
launching a package of 200 free channels to=20
counter the threat from Freeview, the DTT service=20
backed by the BBC offering 30 free-to-air (FTA)=20
channels.
The new service will be available for the cost=20
of the installation of a satellite dish and=20
receiver - around =A3150 (E227) - and will deliver=20
the five terrestrial channels and all the other=20
=46TA digital-only stations including ITV2, BBC3=20
and BBC4.
This the first strategic shift since the=20
appointment of chief executive James Murdoch. It=20
comes in response to the twin threats of slowing=20
of premium subscriber acquisition and the success=20
of Freeview which is now in 3.5m UK homes.=20
BSkyB's gambit is that "Freesat" will slow the=20
progress of Freeview and also act as a primer for=20
their pay-services.
"These initiatives are another step in giving=20
consumers a choice from Sky that suits their=20
needs at the top and lower ends of the scale.=20
They will help drive even greater take-up of=20
digital TV services and enable Sky to enjoy a=20
close relationship with even more customers,"=20
said Murdoch. He also insisted there were still=20
10 million potential pay-TV customers to target=20
as the country moves towards digital switchover.
The move will be welcomed by the government and=20
Ofcom as another step forward in plans to switch=20
off the analogue signal by 2010. Earlier this=20
year the regulator identified the lack of a=20
viable free-to-air satellite service, filling in=20
the gaps in terrestrial coverage, as one of the=20
main barriers to digital switchover.
While customers could already buy a dish and box=20
from Sky without subscribing, the company has=20
fixed the drawbacks created when the BBC went FTA=20
last year and refused to continue to pay for FTA=20
channel smart cards that gave access to the other=20
=46TA national channels. ITV, C4 and 5 have been=20
off the air ever since. But under the new offer,=20
Sky will provide a card to allow viewers to watch=20
the correct regional variant of all the existing=20
terrestrial channels plus over 200 free-to-air=20
channels, including the likes of CNN and QVC, and=20
customers will receive access to all five=20
existing terrestrial channels through the Sky=20
electronic programme guide.
The City, which has been made nervous by the=20
slowing of subscriber growth, reacted well to the=20
news, although whether dish refusniks will be=20
persuaded by free channels is one question, and=20
if they are will they upgrade to pay services is=20
another. Even on the free service Sky will hope=20
to generate some income on interactive services=20
that are available on DTT.
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