Sky to launch pay-DTT service in the UK

lawhec

http://phx.corporate-ir.net/phoenix.zhtml?c=104016&p=irol-newsArticle_Print&ID=960773&highlight

Sky to launch new service on digital terrestrial televisionSky today announced that it is developing plans for the launch of a subscription television service on digital terrestrial television (DTT) this summer. The new service will allow customers to receive some of Sky's most popular programmes - including sport and movies - through a conventional rooftop aerial and a DTT box for a monthly subscription.
By bringing back some of the UK's most popular pay-TV content to the DTT platform*, Sky aims to create more choice for customers who are interested in upgrading from free-to-air to pay-TV. This represents an attractive commercial opportunity, benefiting from existing investments in programming and infrastructure, and attracting new customers to Sky over and above current plans for the growth of Sky's satellite service.

The line-up of channels on the new service will offer a range of content including sports, movies, entertainment and news. The sports service will include live coverage from the Barclays Premiership and other top events. Full details, including branding, pricing and the complete channel line-up, will be revealed closer to launch.

The new service will make use of existing capacity that Sky currently uses to broadcast Sky Three, Sky News and Sky Sports News. As a result, these channels will cease to be available free-to-air via DTT in advance of the launch of the pay-TV service.

Sky plans to broadcast its pay-TV channels on DTT using the more efficient MPEG4 compression technology, bringing innovation to the platform and enabling Sky to offer four 24-hour video streams in place of the three Sky channels currently available, with further improvements expected in future. The pay-TV service will use a highly secure conditional access (CA) system similar to the one that Sky uses for its satellite television service.

To access the service, customers will buy a new set-top box that includes the relevant CA software and MPEG4 decoder. It is anticipated that once the service launches multiple manufacturers will have the opportunity to produce compatible set-top-boxes and other DTT receivers.

The launch of the new service is subject to approval by Ofcom of the necessary variations to licences held by Sky and National Grid Wireless, which provides DTT transmission and multiplexing services to Sky.

Mike Darcey, Sky's Chief Operating Officer, said:

"We look forward to bringing some of Sky's most popular content to digital terrestrial viewers. This will give families more choice and increase the availability of leading content and channel brands."

To be honest I'm in two minds over this - and the more negative one is pulling me over more.

rlogue

It certainly reduces the attraction of Freeview if the existing Sky free channels disappear.

Mossy Monk

so Sky are taking their current channels off Freeview?

watty

http://www.theregister.co.uk/2007/02/08/sky_back_on_earth/

This what French pay TV does on DTT and enevitable as I suggested before for Irish DTT.

I think the skeptics of Irish TV having some MPE4 can eat their hats now.

Basically they can have 6 channels and if they convince UKTV and Disney, etc to join, then more.

rule of thumb 1 MPEG2 ch = 2 MPEG4 channels at SD & approx same quality.

SRB

This is an odd development. People who already have freeview will be totally excluded from this, unless Sky run some kind of "exchange your old box for one of ours", I really can't see people rushing out to buy yet another box, when for much the same money they could go for a full Sky system. The boxes with plug in CAMS aren't that common after all. I guess they could produce a CAM and card "dongle" like the one Sky are toying with for the Portable Sky Player, but that won't be of much use to the bulk of DTT Viewers in the UK.
Likewise, if you wanted the premium channels, sport movies etc, you won't have gone for the freeview option in the first place.
I agree with Watty that it makes sence for Ireland to go with MPEG4 and admit I'm surprised they didn't run with it from the start, but this development has surprised me.

lawhec

watty wrote:

http://www.theregister.co.uk/2007/02/08/sky_back_on_earth/

This what French pay TV does on DTT and enevitable as I suggested before for Irish DTT.

I think the skeptics of Irish TV having some MPE4 can eat their hats now.

Basically they can have 6 channels and if they convince UKTV and Disney, etc to join, then more.

rule of thumb 1 MPEG2 ch = 2 MPEG4 channels at SD & approx same quality.

The more I think about it, I believe Sky are doing this to try and kill off Freeview as its currently known. As Watty says, Sky might try and rope in others to try and re-create something like the Sky Multi-Channels on satellite back in the early 90's. The current growth of Freeview along with the stagnation of new Sky subscribers is I believe the reason for this approach - that and the fact that Setanta is due to start later this year which will be showing Premiership football.

I'd say that they will have some hurdles to overcome though, one being that Ofcom doesn't permit streaming MPEG-4 on DTT right now except in tests. Another being that the Sky were originally forced to sell off their shares in BDB (before becoming On/ITV Digital) in the mid-90's because of concerns of them monopolising pay-TV in the UK. That concern is just as valid now as it was then as I doubt Top Up TV, as limited as it is, I don't think will have much of a hope against them.

If they are allowed to go ahead, they must be mandated to release a CAM for decryption of their services. Though It wouldn't surprise me if the government which appears to be under Murdoch's thumb doesn't even allow that.

bk

This isn't a surprising decision. Freeview has been growing very quickly in the UK, Freeview user numbers have already surpassed cable and are expected to surpass Sky by the end of the year. Sky is very concerned about their sat business.

I expect this is only the first step by sky, I bet that the new Sky DTT box will also be compatible with Sky's BB service or with BB in general and that Sky Sports and Movies will eventually be available by VOD over the BB connection.

I also expect that Sky will try and buy up some of the analogue spectrum when Ofcom auction it off and expand their channel line up on DTT in that way.

Hopefully this is a positive indication that Sky will also turn up on Irish DTT and hopefully on Smart and Magnet's IPTV service.

SRB

Yes, Freeview has been growing, amongst people who see no need to subscribe to a service. Those people are unlikely to want to buy another new box to watch something they were happy enough to live without in the first place. The issues of reception are still out there too - people may well put up with the odd break up on Freeview, but as Top Up are discovering they aren't happy when it starts to impact on subscription services. Saying to a customer, "ah, it's your fault, you need a better aerial" just doesn't wash, unless Sky are going to start upgrading customers aerials FOC too.

fta keith

I am very happy with the 4 Irish Terrestrial tv channels fta on a outdoor tv aerial and Irish Dtt pilot project or the eventual Irish DTT roll out through the tv licence fee

I get the bbc/itv digital tv channels fta through digital satellite

Its very likely sky here in Ireland will launch its sky dtt service during the the Irish Dtt pilot project or the eventual Irish DTT roll out

I will not subscribe to any of the sky subscription as all the best quality football is on fta i.e. the champions league etc is on itv1, itv4 and rte2

Mossy Monk

why would Sky launch a service on DTT in Ireland when DTT is still in a trial phase?

and who says they can launch a service on DTT in Ireland anyway. did they get a license to do so?

bk

fta keith wrote:

I get the bbc/itv digital tv channels fta through digital satellite

That is fine for you, but no good for all of us in apartments with no Sat allowed.

fta keith wrote:

and who says they can launch a service on DTT in Ireland anyway. did they get a license to do so?

Not as such, but one of the content managers could easily sign them up.

The important point is that the more channels on Irish DTT the better. DTT has the opurtunity to inject real competition into the Irish TV market, just like it has in the UK.

lawhec

BSkyB packs up Picnic

BSkyB has shelved plans to launch its proposed Picnic TV pay channels on UK digital terrestrial platform Freeview, blaming delays in the regulatory process being conducted by media regulator Ofcom.

The service, aimed at those who do not want a satellite dish on their homes, would have made premium content such as sports and films available to those who bought special digital boxes and paid a subscription.

Picnic TV would have replaced the three free–to–air channels BSkyB currently has on Freeview: Sky News, Sky Three and Sky Sports News.

Ofcom learned of the proposals 18 months ago and there were some objections from rivals such as Setanta and Top Up TV. This year Ofcom decided to combine its enquiry with an investigation of the pay–TV market.

BSkyB said in a statement: "We continue to believe strongly in Picnic. It will be good for consumers and a good opportunity for Sky.

"While our launch plans are already well advanced, there is no definitive conclusion in sight to the Ofcom process. Consequently, we intend to wind down preparations by redeploying as many of the team as possible to other parts of Sky.

"We will decide whether to reactivate the project when we have more certainty over the Picnic TV proposal. This is not as a result of any change of view as to the attractiveness of the opportunity."

http://www.c21media.net/news/detail.asp?area=1&article=44363