To: BillyG who wrote (37289 ) 11/17/1998 5:28:00 PM From: John Rieman Respond to of 50808
another Divi customer........................................dailynews.yahoo.com Thursday November 12 8:49 PM ET ONdigital aims at Sky with TV launch By Jeff Daeschner LONDON, Nov 12 (Reuters) - British broadcaster ONdigital plans to launch the world's first digital terrestrial TV service this weekend, taking on Rupert Murdoch's BSkyB in the digital TV race. ONdigital, owned by ITV companies Carlton Communications and Granada, will launch its 30-channel service on Sunday, a month and a half after BSkyB started up its rival 140-channel digital satellite TV service. BSkyB's main shareholder is Murdoch's News Corp. ONdigital executives predicted on Thursday that their digital TV systems would sell out in the six weeks to Christmas as equipment makers struggle to meet consumer demand. Unlike Sky Digital, which requires a satellite dish for reception, ONdigital's digital terrestrial service can be received over most viewers' existing aerials and TV sets. Both services require set-top box decoders, with equipment for both systems retailing at subsidized prices of 199 pounds ($330) for new subscribers. ONdigital said it would have ''several tens of thousands'' of its digital TV decoders available immediately in shops around the country, with the first going on sale on Saturday. But ONdigital executives said they expect demand for the equipment to outstrip initial supplies and are currently discussing ways of coping with consumer demand. Set-top box maker Philips has already received 150,000 orders for the equipment from shops, ONdigital said. From the launch date, Philips will produce some 2,500 boxes a day, while Pace Micro will start production soon after and other manufacturers will follow suit early next year to help meet demand for the boxes. Whereas Sky's service is available throughout the country, ONdigital's initial coverage will be more limited, with 70 percent of British households receiving part or all of its 30-channel terrestrial service. ''The vast majority will receive all of it,'' ONdigital Chief Executive Stephen Grabiner told a news conference. ONdigital's coverage will rise to about 90 percent next year as the company rolls out more digital transmitters. The company plans to spend 10 million pounds on advertising by the end of Christmas, and a total of 90 millions pounds over the next 12 months to boost awareness of the service. ONdigital bills itself as an easier, ''plug-and-play'' option compared to Sky, meaning that viewers can buy ONdigital decoders, take them home and plug them in without having to bother with the installation of a satellite dish. Also, ONdigital offers a ''pick-and-mix option'' that allows subscribers to choose any six ''primary'' channels for 7.99 pounds a month in addition to a free shopping channel from Granada and Littlewoods. ONdigital's service will include at least eight free channels such as BBC1 and BBC2 and a new ITV channel, plus subscription channels including start-up First ONdigital and standard pay-TV fare such as Sky One and UK Gold. Sky offers viewers packages of pre-selected channels, starting at 6.99 per month, plus interactive services starting in the spring of next year. ONdigital also plans to introduce interactive features next year, as well as e-mail and impulse pay-per-view. ($1-.6031 Pound) Reuters/Variety