Insiders at Sky reckon the satellite broadcaster may respond the BBC's decision to withdraw £85 million of business over the next five years by removing the Corporations flagship channels from the top spots in their electronic programme guide. As reported last week the BBC has previously scrambled its satellite broadcasts to stop them being accessed outside the UK (this causes problems over things like sports rights). Sky have administered distributing 'keys' to UK viewers to unscramble the signal at the cost of £17 million a year. But with new technology meaning satellite owners Astra can control their satellite signal more accurately the BBC have decided to unscramble their signal and not renew their administration contract with Sky.
Guardian UnLimited editor Emily Bell, writing in today's Media Guardian, reckons the BBC, in ending the deal so suddenly, are trying to end accusations of being in bed with Murdoch (they have entered a number of joint ventures with Sky of late), to show a commitment to their public service obligations (by making services more easily available) and to make a virtual Freeview platform available via the Astra satellite.
This last point is crucial. The BBC backed terrestrial digital TV platform does not yet reach the whole country. If ITV, Channel Four and Five follow the BBC in making their channels available via satellite unscrambled it means viewers outwith Freeview's reach could access the main digital channels with a satellite dish without having to have a Sky subscription.
Sky could retaliate by taking the terrestrial channels out of their electronic guide, meaning viewers would have to tune in their own set top boxes to receive them. This is unlikely however as Sky's subscribers would lose out big time, plus both BBC and ITV are paying Sky considerable sums to make use of the interactive potential of Sky's programme guide system. However insiders reckon Sky might shift the terrestrial channels out of the first five channel positions they currently occupy, giving their own channels priority. In reality this would have little effect commercially, but it would be a token gesture move to show the BBC the Murdoch machine is not impressed.