More FTA Speculation...

mjsmyth

Taken from the Wotsay site at:
http://blog.wotsat.com/page/whatsat?entry=living_4_free


Living 4 free?

LivingTV, Bravo, Ftn and Trouble could go free-to-air on satellite after a row between the channels' owner, Flextech, and Sky.
Sky is rumoured to want to cut the share of subscription revenues it gives to Flextech when their current carriage deal expires in January.
The channels earn 40 per cent of their current revenue, but Flextech may gamble that it can get more money from advertising if the channels are free for anyone to view.
Channel 4 has successfully moved both E4, More4 and Filmfour onto Freeview, and made Filmfour free-to-air on satellite.
Flextech could swap Ftn's slot on Freeview for LivingTV, it's most popular channel, but there's no Freeview capacity open for its other channels.
The dispute is the latest episode in a very public row between Flextech's owner, NTL:Telewest, and Sky, after the satellite giant bought 18 per cent of ITV, which scuppered NTL's bid to buy ITV.
The row would not affect the UKTV channels, which are owned jointly by Flextech and the BBC, but have an independent carriage deal with Sky.

mj

TheDriver

With C4 now finished with the never ending speculation, we had to have something to move onto!
Would be great if they became FTA, hope no lastminute negotiations become successful.

Macy

TheDriver wrote:

With C4 now finished with the never ending speculation, we had to have something to move onto!

We've another while about whether they'll go FTA yer!

TheDriver wrote:

Would be great if they became FTA, hope no lastminute negotiations become successful.

It would be excellent, and where that would leave the UKTV channels when their renewal is up with both Flextech and BBC FTA would be extremely interesting, and a whole load more speculation. Certainly be some FTA package available if that was the case.

watty

Flextech (part BBC owned) is also the more interesting UK TV Gold, Drama etc, all old BBC programs FTA anyway, so Could be VERY Interesting!

L1011

Flextech is NOT part BBC owned, UKTV is part BBC (50%), part Flextech (50%) owned. Big difference.

watty

Sorry, That's what I meant!
Better put:
So if Flextech is thinking FTA and we know the BBC is commited to it as an artical of faith, even if it cost more, then the pospect for UK TV (Mostly BBC repeats) channels FTA is good.

There is no reason why there should be ADVERTS AND subscription. To my way of thinking, if you pay a sub it should be advert free. If you have to suffer adverts, the channel should be free. Why should we pay twice?

Jungle Boy

I don't think Sir Richard (Branson) has thought through this threat

The channels earn 40 per cent of their current revenue, but Flextech may gamble that it can get more money from advertising if the channels are free for anyone to view.
It will be hard to make up the lost income with slot advertising. Ofcom is introducing a junk food advertising ban on programmes that attract a large youth audience. That would be 100% of Trouble!

Channel 4 has successfully moved both E4, More4 and Filmfour onto Freeview, and made Filmfour free-to-air on satellite.
Channel 4 is publicly owned & has a different business plan. Last year, E4/More4 made an operating loss but are speculating that when the British analogue signal is switched off, they will be profitable. Flextech has shareholders dividents to look after.

Flextech could swap Ftn's slot on Freeview for LivingTV, it's most popular channel, but there's no Freeview capacity open for its other channels.
Flextech only hold the FTA rights to its own locally produced programmes. Living TV without CSI, Grey's Anatomy, etc will just be another ftn.

The row would not affect the UKTV channels, which are owned jointly by Flextech and the BBC, but have an independent carriage deal with Sky.
To fund BBC being FTA on satellite, it draws income from 3 main sources :
1. British households pay a TV licence
2. profit from merchandising (DVDs, sell programmes to other markets).
3. profit from the subscription UKTV network. UKTV will always remain subscription.

Denethor

Wouldn't NTL-Telewest owners of Flextech only be damaging their own cable platform by making their channels free on another.

I suspect even if last minute talks are unsuccessful they will arrange temporary cover like ITV did for a year prior to making a final decision