Tuesday, May 6, 2008

..Media Guardian Story...

The BBC director general, Mark Thompson, has outlined ambitious plans for Freesat, the corporation's free digital satellite TV joint venture with ITV, including offering access to on-demand programming via broadband TV services such as iPlayer and Kangaroo.
Thompson, speaking at the press launch of Freesat today, said the service was aiming to swiftly offer viewers broadband internet access through an in-built ethernet connection in set-top boxes.
"The long-term goal of Freesat is to connect to broadband and the internet [to make] services such as the iPlayer and Kangaroo accessible through boxes like this," he added.
Thompson said that offering broadband access via Freesat boxes, something that BSkyB is also aiming for with its Sky+ personal video recorder boxes, marked "something new in satellite broadcasting in this country" that would be available to all households.
A senior executive at Freesat said that the plan was to offer broadband access via an ethernet connection within "months".
Freesat has been pitched as a potential rival in some respects to Sky, which offers subscription and free satellite services, and its long-term plans and customer acquisition strategy.
Michael Grade, the executive chairman of ITV, said that as its high definition channel would be available via Freesat the broadcaster would not necessarily now need to do a deal to offer the network via Sky's digital satellite service.
"ITV HD won't be available on Sky at the moment," Grade added. "We are a commercial organisation and won't give it to Sky for nothing."
However, Thompson said that Freesat was "not intended in any way to compete with BSkyB's central proposition".
"Freesat represents a new choice out there in the market and more choice," he added.
"Sky is pretty expensive and it is possible for many to switch to free satellite at a lower price … [Sky's] free proposition has not been front of mind to date."
Emma Scott, the managing director of Freesat, said that while the service currently had no capability to offer subscription services it would be "considered in the future". "It is fundamentally a free platform," she added.
Channel Five is expected to join Freesat in the near future, once programming rights issues had been resolved. For now the service will features BBC, ITV and Channel 4 networks.
Grade said that Freesat, which was originally mooted to launch in 2006, "represents the final piece in the UK digital TV jigsaw".
"Freesat is absolutely complementary to the UK's most popular [digital] platform Freeview," he added.
"Every house can have access to free-to-air digital TV and we are confident it will be a huge success."
Thompson said that Freesat would "make a real difference" in achieving the BBC's aim of transmitting its high quality programming to licence fee payers across the UK on its new HD channel.
"We are moving as fast as we can to get our crown jewels in HD all onto Freesat," he said.
Freesat is targeting two main demographics: households that have snapped up around 9.6m HD-ready TV sets; and the 27% of UK households that are currently unable to get digital terrestrial TV service Freeview.
Even after digital switchover is complete it is estimated that around 13% of households will only be able to access around half of the channels on Freeview.
Freesat has a total annual budget of £6m, funded by ITV and the BBC, of which an undisclosed amount will be spent on marketing the service to consumers.
The Sky chief operating officer, Mike Darcey, criticised ITV's decision not to make ITV HD available on Sky.He said: "ITV want to have their cake and eat it. On the one hand, they are claiming to champion HD for all, while on the other, they are deliberately withholding free-to-air content from almost half a million Sky HD homes.
"This is neither in viewers' interests nor in keeping with ITV's 'HD for all' posturing. All in all, this is curious behaviour for a public service broadcaster."

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