Two transponder contract for Channel 4

Qutoed form Digital Spy:

21:15 BST, Friday 17th September 2004 -- by Iain Chapman
Channel 4 has signed a 10-year contract with SES ASTRA. The contract, worth €80 Million, provides Channel 4 with two transponders on Astra 2D. This is the first direct contract between Channel 4 and SES ASTRA.

The space would provide Channel 4 with space for about 14 channels, although some of this will be used by interactive applications. Initially Channel 4 will only use the space for two channels - the forthcoming More4 and existing service E4+1. The remainder of the space is likely to be leased to other broadcasters as Channel 4 has no immediate plans for any further channels to be launched.

David Scott, Deputy Chief Executive of Channel 4, said: "These transponders will provide Channel 4 with considerable flexibility when considering the expansion and future development of our broadcast services. We have worked with SES ASTRA in the past and look forward to a continued successful relationship."

Alexander Oudendijk, SES ASTRA Senior Vice President of Sales and Marketing, said: "Channel 4 programmes are watched by more than 75% of the UK population during an average week and we are delighted to add such a prominent terrestrial broadcaster to our client list. The UK is an extremely important market for SES ASTRA and this deal not only strengthens our position in the UK but also underpins our status as Europe's leading DTH satellite company."

An interesting note is that the space will be on Astra 2D. This satellite has a tighter footprint which was designed to be focused on the UK. By using this satellite, like the BBC, Channel 4 could potentially decide to broadcast its channels in the clear when its encryption contract with Sky expires in 2008.