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To: Black-Scholes who wrote (42864)	7/14/1999 5:56:00 PM
From: John Rieman	Respond to of 50808

Ondigital knows how to give-away boxes.................... industrywatch.com Free set-top boxes connect ONdigital to demand surge The Scotsman Company Multilink • Carlton Communications ONDIGITAL, the digital television business jointly owned by [ Carlton Communications ] and Granada, yesterday said it had signed up nearly 250,000 subscribers, largely due to a boost from its decision to offer free set-top boxes. The company said demand surged in June after the free offer was launched with a total of 68,000 people signed up for the service, doubling its total for the three months. The demand meant that ONdigital claimed 247,000 subscribers to its service by the end of the month, comfortably ahead of most expectations and underpinning its own projections of reaching two million subscribers over a three-year period. Its rival, SkyDigital, which has a head start through its existing subscriber base, is expected to announce next month that it has hit its initial target of one million subscribers about two months ahead of schedule. ONdigital's viewers can receive its 30-channel service through existing TV aerials with the aid of set-top boxes. Subscribers to SkyDigital's 140 channels need a satellite dish. The scramble to gain market share at this stage is considered crucial ahead of further competition with the launch of a full cable television digital service. ONdigital claimed its attractions this autumn would include a tie-up with the MTV music channel and sports events such as the qualifying rounds of the European Champions League, the Rugby World Cup and test cricket. It also aims to offer its customers free e-mail by the end of this year, followed by home shopping and banking services early next year. Stephen Grabiner, the ONdigital chief executive, claimed that the growth of the digital market should help persuade the Government to set an early date for ending the existing analogue television system . He predicted that the date for the switch-off could be announced within the next few weeks and could be set for before 2010. Both Granada and Carlton shares have gained ground in response to the growth in the digital market, and the announcement of the strong sales led to some profit taking. Granada shares fell 16.5p to 646p and Carlton's dropped 13.5p to 556.5p. (Copyright 1999) _____via IntellX_____ Publication Date: July 09, 1999