BBC and ITV 'discuss free digital TV deal'

DMC

From: http://www.ireland.com/newspaper/breaking/2001/1107/breaking9.htm

BBC and ITV ‘discuss free digital TV deal’

The BBC and commercial television network ITV are in talks to save ITV's troubled digital TV business and allow free digital access to BBC channels, Britain’s Financial Times newspaper has reported.

Sources close to the talks told the newspaper the rescue plan for ITV Digital involves Britain's free-to-air broadcasters forming a "digital coalition" to pool broadcast and transmission operations and develop a set-top box to deliver free multi-channel digital television.

The report said the British Broadcasting Corporation feared that if the struggling ITV Digital pay-TV service is shut down, the only digital TV distribution system in the UK will be Mr Rupert Murdoch's British Sky Broadcasting, and cable networks Telewest and NTL - both under the sway of US investors, the paper reported.

However a BBC spokeswoman said she was not immediately aware of any such talks with ITV to rescue its digital television business.

She said the BBC was committed to affordable digital set-top boxes and free-to-air digital services as part of Britain's plan for a full switch to digital services between 2006 and 2010.

Under the digital coalition scheme involving the BBC, ITV, Channel Four and potentially Channel 5, ITV could break even after further investment of less than 150 million pounds, the newspaper said.

The BBC would not commit any money, the FT reported.

The parent companies of ITV Digital - British television groups Granada and Carlton Communications - say the digital television business needs a cash injection of at least 300 million pounds to break even, the FT said.

The coalition initiative is weeks away from completion and several parties could yet object, the newspaper said.

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Interesting stuff. I cant see it happening though, the BBC is quite happy as a programme provider, and I would'nt reckon it would want to put money into that venture. They'd be mad to!! :rolleyes:

Marconi

Thanks for that Damo - as you say. interesting.

I've found two other versions of this story at:

http://c.moreover.com/click/here.pl?j27287718
http://c.moreover.com/click/here.pl?j27271525

Also, there's a company based in Cork (I can't remember its name) which is developing a free-to-air set top box which they hope to retail in the UK for about GB£100 - it should help to improve the situation over there as no subsciriptions will be needed - though I don't think ITV Digital are too happy about it. No doubt an Irish version will be developed, but it'll probably cost twice as much??!!

Itv digital are obviously hoping,that once "free to air" boxes become available,a considerable number will be tempted to add on premium channels?
Or more likely this is there answer to ITV ariving on Sky (they would have to solve their reception issues first though)
This would indeed be one answer for them(ahead of analogue shutdown)-They are learning - Were it not for the blindness of Rivalry and Pride they could have saved themselves a lot of losses, by looking at such an idea at start-up.
I am presuming here that the boxes would be subsidised, as if they are not-they may wait for analogue shutdown for a turnaround or go broke whichevers first.
mm

Marconi

A further update to this story can be found at:

http://media.guardian.co.uk/city/story/0,7497,589710,00.html

Mind you, reading it one wonders will DTTV ever be a commercial success and could it possibly work over here?

Marconi,
That article is just really repeating,what we know-all the mistakes ITV/ONDIGITAL made.
It may indeed be a little late for them to start these kind of ideas.
Having said that, the old saying applies:
The man who never made a mistake , never made anything. -an Irish DTT service has all the mistakes played out for it at no cost, right in front of its very eyes! and should be learning.
The demand for multichannel in Ireland was always up untill lately, a demand for the UK channels-I suspect now they are appearing on Sky-the demand for its services will increase.
But in towns and Cities where there is a cable system, Sky's family pack is roughly twice the cost.
So room for competition-I would think so!
It would help though if authorities here ( and they do want to keep inflation down) would fast track DTT.
If what , we read in this forum is correct, and Irish DTT should be plug in and play in urban areas-Then there will be real competition and unlike the UK-It should be a runner
It always amuses me by the way when I read about ITV digitals reception problems in the UK, considering I am picking it up without too much difficulty here in Wexford-With an aerial system that initially cost around £400 to put up!
presumably if I was in GB with the same gear-I'd be picking up ITV digital from half the Country!.
mm