- ITV have confirmed their new golden oldies channel - ITV3 - will be a free-to-air channel. There had been talk of making the channel, which will screen classic ITV shows, a pay-per-view available via Sky (and not Freeview) - essentially replacing the Granada Plus channel - a joint venture between Sky and former ITV company Granada. However ITV boss Charles Allen has turned down the multi-million pound income stream such a channel would have delivered if pay-per-view, most probably because Sky insisted on taking a stake in the channel. ITV3 will now launch for free on 1 Nov.
ITV's ongoing relationship with Sky is an interesting one because the former is yet to sign its encrypted distribution contract with the latter. Sky encrypt all of ITV's channels on satellite ensuring that they are only seen within the UK (otherwise viewers on the continent or in Ireland could point their dishes at Sky's satellite and access ITVs shows, which poses possible licensing issues for sports events and movies). As previously reported, the BBC last year decided to stop having their satellite broadcasts encrypted, depriving Sky of a valuable income stream. Rumour has it ITV might make a similar decision - which would cost Sky in the region of £8million, which they aint going to like.
Then again, Sky announced profits of £322 million on total revenues of £3,656 million yesterday, so I doubt they need our sympathy.