Freesat considers pay-TV offering
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guardian.co.uk
19 July 2010
Sky Sports: Freesat is monitoring BT's move.
Photograph: Tom Jenkins
Freesat, set up by the BBC and ITV to assist digital switchover alongside Freeview, is considering a bold move to expand its appeal by moving into pay television, and offering users the chance to subscribe to Sky Sports 1 and 2.
Its board is debating the option of taking advantage of the reduction in wholesale prices forced through in April on BSkyB by Ofcom.
Emma Scott, managing director and co-founder of Freesat, said: "We are looking at pay television.
There is a lot of discussion around the Freesat and pay television issues taking place at board level. We haven't taken a final decision."
Freesat was watching developments closely, including BT Vision's move to offer customers the service in time for the new Premier League season.
Scott added: "My personal view is that it would be odd for Freesat not to offer the option as well."
Pay-TV sales would be handled by a third party, with Freesat, which has its own electronic programme guide, operating the conditional access system that would underpin it.
Unbundled pay television could be "nirvana for some consumers", Scott said, since "not everyone wants to subscribe to the full pay package".
In order to offer pay-TV services, however, Freesat would require the approval of the BBC Trust, and the move would also run counter to its brandname.
Freesat, launched by the BBC and ITV as a joint venture in May 2008, has built a customer base of 1.25 million, ahead of expectations, and is projected to reach two million by the end of switchover in 2012. It offers more than 150 channels, high definition and access to the BBC iPlayer.
More than half its customers are former Sky homes, followed by Freeview homes upgrading, with the majority opting for high definition boxes.
"There is a real gap in the market for people who love and want free television," Scott said.
The British TV market is currently delicately poised, with half consisting of free-to-air homes and half of pay-TV subscribers, principally through BSkyB and Virgin Media. Freesat is financed by a £10.7m annual budget, which comes from shareholders and revenue.
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