British Digital Broadcasting Says It Is On Schedule For Launch
05/08/98
Dow Jones Online News
(Copyright (c) 1998, Dow Jones & Company, Inc.)
LONDON -(Dow Jones)- British Digital Broadcasting PLC Friday said it is on track for launch in the last quarter of this year, but said it would need just under two million pay-television subscribers before the service broke even.
BDB is a joint venture of Granada Group PLC and Carlton Communications PLC (CCTVY).
At a presentation to analysts, Michael Green, chairman of the venture, predicted that with five million people using British Digital, profits could reach 250 million pounds. ($412 million).
The company wasn't saying when it would move into the black.
But Green was bullish as he declared, "All television is going digital. The only real question is when."
BDB said it had done consumer research which showed that one million people would be willing within the first year of digital TV's launch to pay 199 pounds for a set-top box, which receives digital signals.
The Financial Times reported this week that Granada plans to give some customers free boxes to promote the service.
The venture will launch with an initial 15 channels with programs supplied by Carlton, Granada, the British Broadcasting Service, Flextech PLC and British Sky Broadcasting PLC. Consumers will be given access to another 12 stations.
But the service will face competition when BSkyB, which is controlled by News Corp., a 200-channel satellite service set to start in June.
BDB has placed orders for the set-top boxes with six manufacturers: Grundig AG, Pace Micro Technology PLC, Philips Electronics NV, Nokia Corp., Sony Corp. and Toshiba Corp.
Also Friday, it was announced that C-Cube Microsystems Inc.'s (CUBE) Divicom unit will supply equipment for BDB's broadcast center in London. Financial terms weren't disclosed.
Copyright (c) 1998 Dow Jones & Company, Inc.
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