Five reaches for BSkyB

BSkyB PLC said it has won the contract to supply UK terrestrial channel Five with its news.

British Sky Broadcasting Group (BSkyB) is Britain's number one pay-TV provider.

The group distributes programming to 12.2 million subscribers in Britain and Ireland, including nearly 8 million who subscribe to its digital direct-to-home (DTH) satellite service.

A Sky spokesperson has said that it is a five-year deal, with the company providing Five's lunchtime and evening bulletins from January 1.

Analysts estimate the deal is worth around £35m (€51.91m).

ITN has been supplying Five with news since the channel was launched in 1997.

ITN still has the contracts to supply news to ITV and Channel 4, but the value of its latest ITV contract was slashed by £10m (€14.83m) to £36m (€ 53.41m) due to pressure from a rival Sky offer to produce the news at a cut-down price.

The company terminated its analogue satellite service in 2001, but offers interactive TV services and holds broadcast rights to the leading football leagues in England and Scotland, and has minority stakes in several clubs.

Rupert Murdoch's News Corporation owns 33% of BSkyB.