Bidding war over Freeview slot begins

net1

The bidding battle for a new Freeview channel has commenced. Reports say ITV and Channel 4 are both considering multi-million pound offers for the newly created channel slot, which is being sold by Freeview co-owner Crown Castle UK.

Broadcast magazine said broadcasters were prepared to offer up to £5m per year for the slot. That is five times the amount channels reportedly went for when Freeview launched in 2002. Sealed bids must be in by next week.

The Financial Times reported US networks ABC and NBC were also interested in acquiring the channel position, on the back of what the FT said was "rampant sales of Freeview systems". Disney-owned ABC already broadcasts its ABC1 channel on Freeview.

A spokesman for ITV, which already broadcasts ITV1, ITV2, ITV3 and ITV News on Freeview, told the FT: "Capacity on Freeview is in very short supply, and we need to make sure we can take advantage of capacity that becomes available."

Crown Castle UK - acquired last year by National Grid Transco for £1.1bn - recently announced it had created additional capacity on the digital terrestrial platform for a new 18-hour channel. The new channel could launch as early as April 1.

rolfw

Well it would be nice if there wasn't another ITV channels, I guess that the content would just be recycled from the other three.

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gameboy

From Reuters...

British and international broadcasters are battling for a newly available TV channel slot on Freeview, the subscription-free multichannel TV platform that added some 1.5 million homes over Christmas.

ITV, publicly-owned broadcaster Channel 4 and Walt Disney are among the likely bidders for the 18 hour per day channel being offered by Freeview co-owner Crown Castle UK, according to sources familiar with the situation, with bids due on Monday.

Other potential bidders include Turner Broadcasting, Universal Studios Networks and Britain's dominant pay-TV provider, BSkyB, which already has three channels on Freeview and owns the platform along with Crown Castle and the BBC.

Crown Castle International sold Crown Castle UK to to gas and power operator National Grid Transco last year.

Channels were available on Freeview when it launched in 2002 for about 1 million pounds each, but due to the platform's popularity the new slot could go for 3 to 5 million pounds, according to estimates in the trade press.

ITV, which also has three channels on Freeview and is looking to expand its digital offerings to offset a long-term slide in ratings at its core channel, declined to comment, as did Channel 4.

"All the terrestrial broadcasters realise their performance on Freeview is far in excess of their performance on Sky, so it's in their interest to put more channels on the platform," said a source close to one broadcaster.

A Disney UK spokeswoman declined to comment on the potential bid, but said the company was "very interested in extending" its ABC1 channel, which is on Freeview but only from from 6 a.m. to 6 p.m.

The success of Freeview, now in about 5 million homes according to the BBC's estimate, has come as Britain moves toward a total switchover to digital television. About three-quarters of UK homes already have digital TV through Freeview, Sky or cable, and the government wants to switch off the analogue signal altogether by 2012.

Industry watchers have long expected Sky to convert its Sky Travel channel on the Freeview platform into a general entertainment channel. That speculation that was fuelled by Sky's decision to show the first episode of the U.S. drama "24" -- starring Kiefer Sutherland as counter-terrorist agent Jack Bauer -- on Sky Travel this weekend.

"Sky Travel carries a broad range of travel-related entertainment, factual programming, and some shopping," said a Sky spokesman. Asked how "24" fit that remit, he said: "Jack goes on one hell of a journey."

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les74

Shame it will have to be a company that puts all those damn breaks in for adverts, I no thats how they gets there money but dont you think there always to greedy..like comercial radio, I always swaps chanels when they come on and then back or try and avoid comercial chanels...cant stand adds spoils the progs.

rolfw

I agree les74, but unfortunately they need to pay their way to survive.

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twag42

why do you think there are so many adverts in american shows? in britain and here in the netherlands adverts on telly are approx. 15 mins apart which isnt too bad,in america theyre every 7-8 mins,cause of all the sponsorship(advertising) which keeps the programs free.no telly license in the good ol usa

twag42

a 30 second advert costs over $1,000,000 at this years super bowl final,but it keeps the program makers happy.