Terrestrial TV gets a new rival

12 April 2012

BSKYB has a chance to go head-to-head with terrestrial broadcasters through its new digital coalition with the BBC.

The Independent Television Commission has awarded the group the licences that were formerly owned by Granada and Carlton's failed venture ITV Digital.

This means that Sky's free channels - Sky News, Sky Sports News and Sky Travel - could be accessed by millions more viewers. Previously, they were only widely available to people with pay-TV packages.

'This gives Sky a toehold in terrestrial TV,' said Lorna Tilbian at Numis. 'They will be able to distribute their news channel a lot more widely.' This could pose a threat to ITV which had tried to win the licences.

BSkyB - headed by Tony Ball - rose 27p to 602p, Granada rose 2p to 111p while Carlton fell 2 1/2p to 193p.

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