Digital TV Blog

Regulators to make Sky give up the goods?

Sky could be forced to cough up a portion of, or all of the 17.9% ITV stake, after Ofcom and the Office of Fair Trading have both stated that the move, widely regarded as a cynical move to curb the expansion of NTL/Virgin Media, is anticompetitive.

Ofcom said that ownership of a controlling share in the terrestrial channel represented a number of “public interest issues in relation to sufficient plurality of news provision for both cross media and television news in the UK,” with the OFT echoing this sentiment saying that the purchase could “result in a substantial lessening of competition.”

These announcements come pending the Ofcom investigation of Sky and the rest of the pay-TV market, and just after Virgin Media submitted their case to the High Court, regarding the Sky/Virgin dispute over carriage fees, potentially adding more wood to the Virgin bonfire.

These are testing times for the satellite broadcaster, who has seemingly run into opposition from all sides in the last six months. Firstly the swoop-purchase of the ITV stake last year which prompted these comments was followed by Sky’s announcement of plans to replace its Freeview channels with pay-per-view content, which prompted its competitors – BT, Top-Up TV, Setanta and Virgin – to submit a joint plea to Ofcom, which was followed by the withdrawal of some of its channels from the Virgin cable platform as a result of the dispute mentioned above.

Despite this, Sky viewing figures continue to grow, although this may be a result of Virgin Media customer migration.
The worst-possible outcome for Sky is that a relinquished grasp on ITV would leave another buyer, potentially Virgin, free to steam in and make for a bid – a rejuvenated terrestrial TV platform would pose a direct threat to the appeal of Sky’s pay-TV package.

Plans for free HD on the BBC

The BBC and ITV are preparing to launch a free to air digital TV platform that will broadcast content – including HD programmes – via a satellite network. This hopefully puts the kibosh on negative rumours about high-definition content not being made available on a non-subscription platform such as Freeview. The service is to be dubbed Freesat, or most likely BBC and ITV Freesat, probably to avoid any confusion with the existing Freesat from Sky package.

The Beeb has made its basic channels available for satellite broadcast via Sky’s satellite platform since the early days of satellite broadcasting in the UK, and so making the technological leap to a converged DTT/satellite platform is not exactly a new challenge. The free satellite service would see broadcasters using the same Astra-2 satellites used by BSkyB.

As more content is able to be broadcast and received using a satellite system, viewers would be able to access a winder range of channels – including HD – than that which is currently available on Freeview, via a set-top box or compatible IDTV set, and having a dish installed to the exterior of the house. Like Freeview, once the initial equipment purchases have been made, there are no subsequent subscription charges or bills.

Another potential bonus of a free-to-air satellite service is that a satellite footprint would be able to send transmissions to those who live in areas that cannot receive the Freeview signal, thus making the HDforAll campaign a reality.

However, if this is to happen, then the terrestrial broadcasters need to get their act together. Talks about a have been on the cards since 2005, and the project was initially slated to have been launched last year - ‘Spring 2008′ is the tentative date for when the service is to be launched – that same time that the Border region is set to switch off its analogue signal, meaning that until then, free HD might arrive a little to late for those in the region who want it.

Even so, by then it may be possible for DTT viewers to receive HD content anyway – the BBC have announced that HD over Freeview is possible by doubling the bandwidth – the only snag here is that in order to receive free HD is by purchasing a new aerial and receiver. Either way, the good news is that high-definition content should be available on a non-pay-TV platform in the near future.

Beeb trials on-demand catch-up service

The BBC has announced that it is trialling its iPlayer on-demand service – an online service which allows viewers to download programmes from the last 7 days to watch on their computers, much like the Listen Again feature on the websites of the BBC radio stations.

Auntie has also confirmed that it intends to raid its archives and make every programme produced by the BBC to be available for downloading in the future.

This means viewers will be eventually be able to download great moments from TV history, excluding what hasn’t already been repeated to death on UK Gold. Viewers will be able to watch John Peel presenting Top of the Pops, England’s World Cup victory over West Germany, the baffling interpretive dances of Pan’s People, and other long-forgotten shows such as Jukebox Jury, The Liver Birds and, er, Chalk.

20,000 people signed up for the trials of the service, which will allow people to download up to 1000 hours of BBC content ranging from documentaries, news bulletins, to children’s programmes and drama. If the trial is successful and the service is green-lighted for general public use, it is believed that viewers will be able to download content which will also be able to be watched on regular TV screens via a broadband/iPTV connection, and on certain mobile handsets. The venture has been dubbed as being “platform-agnostic,” meaning that PC and Mac users will be able to download content.

One issue yet to be ironed out is one of copyright – in light of all the stick that record companies received over DRM, many viewers are concerned that they will be unable to share content that they have downloaded, content that some, particularly critics of the licence fee system, feel that has already been paid for.

The ‘other’ terrestrial channels have also launched Both Channel 4 and Five already have on-demand content (4oD and five.tv) and ITV have also just launched ITV Local London, a public-access-esque broadband TV service mostly based on user-generated footage, showcasing the work of local film and documentary makers.

Jobcentre team up with digital TV providers

The Department for Work and Pensions’ Jobcentre Plus agency is piloting an interactive job search scheme for digital viewers. As a greater number of residents have access to digital TV than the net, the Jobcentre in partnership with DigiTV, a non-profit body owned and run by Kirklees council, have decided to enable a wider demographic with the opportunity to search for local vacancies from their homes.

Employment minister Jim Murphy said: “With over 70% of homes now owning at least one digital TV set a greater number of people have access to digital TV than the web. This is a great way to bring a comprehensive job search facility to those without access to the internet.”

Having said that, as the service is available to anyone that has access to satellite, cable or broadband enabled Freeview boxes, this isn’t entirely helpful for those Freeview viewers who can’t get a broadband connection. And, as and Sky, Virgin Media, BT all offer bundled deals on TV and broadband, a percentage of digital TV viewers may well be able to access Jobcentre information from home anyway.

Still, being able to view details for over 400,000 vacancies a week from home rather than at a Jobcentre desk should greatly aid those looking for work, and is another example of how the digital revolution is changing the shape of TV.

With Oyster card holders in London able to top up their cards online, it is entirely possible that this and similar public services could be accessed and topped-up through TV screens in the not too distant future.

Auction on airwaves leaves free HD future looking doubtful

When the analogue signal is finally put to rest in 2012, it will leave large amounts of broadcasting space in the airwaves free for more content to be delivered to people’s homes.

Freeview customers, currently representing the largest digital TV consumer group are particularly in favour of having a significant portion of this free space to set aside for high-definition DTT channels, after the successful HD Freeview trial run in London last year. Currently, the Government plans to sell the free space, valued at around £10 billion, to be sold to whoever can stump up the most cash.

HDforAll, a pro-Freeview lobby group have petitioned Ofcom to retain some of the broadcasting spectrum for DTT viewers. The home page of the HDforAll website reads thus:

“On 19th December 2006 the media regulator, Ofcom, announced plans to auction publicly owned spectrum to the highest bidder. If the auction takes place as planned the millions of consumers who have purchased, or plan to purchase HD TVs may never be able enjoy high definition TV on the Freeview platform.”

Their argument is that HD will become a privileged service only available to those who are willing to pay for a subscription service, which for reasons of either budget or viewing preferences (or both) some viewers are refusing to do.

An e-petition which totalled to just under 5,000 signatures was made out to Downing Street, and an article in the Sunday Times last month suggested that auctioning off all of the publicly-owned broadcasting space could be a vote-swinger for the next Election.

Regulator halts legal wrangling

Virgin Media, which filed its case against Sky in the High Court last week, may have to wait until the same Ofcom investigation which it petitioned for to be carried out before any courtroom wrangling can take place.

After the widely publicized withdrawal of Sky’s most popular channels from Virgin Media’s digital TV service in March this year, Virgin, along with BT, Setanta and Top-Up TV asked Ofcom to conduct a survey of the British pay TV market to determine whether or not Sky had and was abusing a dominant market position – the court case itself is based on the Competition Act 1998 and sections of the EC Treaty which prohibit a market leader from abusing its position.

Ofcom has agreed to carry out the study, the outcomes of which may see a deal forcing Sky to return its channels to Virgin, which is presumably what Virgin is hoping the outcome of the court case, should it happen, will be.

When renegotiating a deal for the channels, Sky asked Virgin for more money, and Virgin refused to pay up. The channels, including Sky One and Sky News, were promptly withdrawn from the Virgin service. Sky are expected to defend claims of market abuse, by highlighting the popularity of their channels, and saying that price hikes were justified. Sky also have also been quick to point of Virgin’s recently acquired monopoly on the UK cable network.

In either case, Sky now have 24 days to respond before any legal proceedings can go ahead.

Tiscali’s iPTV service has arrived

The ISP Tiscali joined the ranks of digital TV providers when the Tiscali TV launched on March 1, following the company’s takeover of the Homechoice service in August last year. The service offers viewers access to free-to-air digital channels, as well as range of free and pay VoD content, all delivered over an ADSL phoneline connection that connects to the Homechoice set-top box.

Tiscali’s iPTV service is available to Tiscali broadband subscribers, but at the moment it is available only in London and Stevenage. There are plans to roll out services all across Tiscali’s network over the next couple of years, with potential customers in Birmingham, Newcastle and Edinburgh able to sign up for the service in May, and Sheffield, Leeds and Liverpool to be connected later in the year. There are also plans to release a programmable DVR capable of recording in HD for the service in July.

A TV and 2Mb broadband bundle costs £14.99 a month and includes TV-on-demand and pay-per-view films as well as more than 30 channels; Tiscali’s top TV package costs £54.99 a month and includes broadband, and more than 80 digital channels including Paramount Comedy, UKTV Gold, MTV, and Sky Sports 1 to 3.

Tiscali TV offers the lowest-cost TV, broadband and home phone bundle (all three for £19.99 a month), but does not offer as many channels as Sky or Virgin Media.

However Tiscali believe that customers will be unconcerned; Mary Turner, chief executive of Tiscali UK said that the “success of Freeview has shown that customers want more than five channels but don’t necessarily want to pay a high monthly subscription.”

Customers may be attracted by the lower monthly cost, and by the fact that no aerial, cable connection or dishes – and therefore no lengthy and expensive installation processes – are required to receive the channels.

The Branson/Murdoch Jr. battle extends to the courtroom

Virgin Media is set this week to submit a plea to the High Court over the decision made by Sky, to pull its premium channels from the cable TV platform.

A statement released by Virgin in March read that “Following Sky’s withdrawal of its basic channels from Virgin Media’s TV service, Virgin Media has formally advised Sky that it will pursue action in the high court if their carriage disputes are not resolved within 30 days.” It is believed that Virgin will make good of its legal threat – after seemingly have given a Sky an Easter weekend reprieve – by the end of this week.

The expected legal action is the culmination of a bitter struggle between Sky and Virgin the loss of Sky channels from the Virgin Media cable platform. The fierce advertising battle has seen an extensive Sky billboard campaign deriding Virgin’s lack of hit shows such as The Simpsons and Lost, and Virgin taking out huge 4-page pullout advertisements for its services in the Sky-affiliated Sun newspaper.

Each company has accused the other of acting unreasonably in attempts to agree a new deal which sees Virgin pay Sky a carriage fee for its more popular channels such as Sky News and Sky One.

Virgin’s claim is that Sky wanted double the amount for carrying the channels than previously charged under a deal which expired this February; Sky has insisted that it only wanted 20% more.

Sky spokespeople have stated in the past that the company is prepared to “defend itself vigorously should Virgin Media decide to extend its PR campaign to the courts,” and Virgin seem equally committed to drag Sky through the courts to end what they see as a “systematic abuse of dominance” of the pay-TV market.

Official report shows huge increase in sales

Freeview continues to be the number one choice for analogue switchers in the UK. According to a report recently published by Ofcom, over a million (approx figure: 1,002,000) new homes converted to digital through purchasing a Freeview box in the fourth quarter of 2006, following 800,000 in the previous quarter.

This brings the total number of Freeview viewers to 7,703,000, making it the UK’s most popular DTT platform.

With the digital signal increasing all the time in preparation for the switcover due to start next year, and with more and more set-top boxes coming complete with DVRs and programmable EPGs, Freeview is proving to be an attractive offer for those who don’t want to have to fork out for connection fees or monthly subscription rates.

Sky and Google team up for public access TV/internet

The beta of Sky Cast, a joint venture between Sky and Google – who own popular video sharing website YouTube – has just been released, and both of the companies are looking for people to record and upload content for testing.

Sky Cast, which uses Google Video, is intended to be a public-access type service which will cross a variety of platforms, and allow people to become more involved with TV. People who subscribe to Sky Cast are encouraged to record their own footage on their mobiles or conventional digital video cameras and upload them to the net for sharing with other viewers, with the most popular videos being made eligible for broadcasting on Sky TV. Video clips will also be made available for downloading to web-enabled mobiles.

The service is currently running with the catchphrase ‘Film it, Load it, Sky Cast it!’ Users can rate videos with a system similar to the ‘five star’ system on YouTube. You do not have to be a subscriber to Sky to sign up for Sky Cast, however (and this should go without saying) you wont be able to watch the fruits of your labour if you video gets selected for broadcasting on TV if you’re not one.

There are a number of guidelines in place to ensure that the videos can be watched by as wide an audience as possible. These include a limit on the overall running time of any videos (no longer than 10 minutes) and suggested bit rates of 2Mbps and 5Mbps, so that users with slower broadband connections can watch videos at a reasonable quality.

If the beta tests are successful, Sky Cast could grow to become every bit as popular as You Tube, and prove to be another attractive aspect of Sky’s See Speak Surf package.