Sky launches 200-channel free-to-air service in UK

Satellite broadcaster BSkyB moved to increase the take-up of digital television in the UK today by rolling out plans for a 200-channel free-to-air service.

Viewers will pay a one-off fee of £150 (€225) for a minidish, digibox and access card as part of a deal that BSkyB hopes will lead them to switch to pay-TV packages.

The group also announced that it was developing a premium range of channels for owners of wide-screen televisions, plasma screens and home cinema.

Due to launch in the UK in 2006 and already popular in the United States, the high definition TV format offers enhanced picture quality.

Chief executive James Murdoch said the initiatives would help drive an even greater take-up of digital TV services.

Around 27% of households are currently unable to receive the full range of digital terrestrial TV services but this would be overcome by the new service from BSkyB.

Mr Murdoch said: “These initiatives are another step in giving consumers a choice from Sky that suits their needs at the top and lower ends of the scale.”

No details were provided on the investment necessary to get the services up and running or targets for customer numbers.

BSkyB said its decision to launch a free-to-air satellite service without subscription fees this year did not mark a lessening of its commitment to Freeview, which sells boxes for around £50 (€75) in shops. Investors were pleased with the move as shares rose 3% today.

BSkyB said viewers using its free-to-air service would be able to listen to 81 radio stations as well as watch 116 television channels, including the entire BBC portfolio, ITV and CNN.

Four children’s channels will be available in addition to five dedicated to music, five focusing on sport and 30 offering general entertainment.

The digiboxes also contain a modem so users can access online services including email, SMS text messaging and public service information.

The initiatives would help the British government meet its target of switching over to digital-only broadcasting by 2010 because more people will have the hardware in their homes, the group said.

BSkyB, based in Isleworth, west London, reported last month that pre-tax profits doubled to £371m (€558m) for the nine months to March 31 from £160m (€240.8m).

It expects to meet its target of eight million direct-to-home satellite subscribers by the end of the current calendar year.