The new channel, to be called Sky One Mix, is expected to launch in the next few months, possibly as early as November. It will air a mixture of Sky One repeats and new shows.
The news will surprise the industry, which had been expecting an announcement about a new free-to-air entertainment channel for Freeview. The channel has already been dubbed the UK's Channel 6 and is expected to compete fiercely with the five terrestrial channels for audience and advertising.
However, it is understood that a free-to-air channel may not launch until 2005. Until then, Sky will provide Sky News, Sky Travel and Sky Sports News. The new entertainment channel is expected to replace Sky Travel when it launches.
The move is part of chief executive Tony Ball's strategy to develop the broadcaster's content. It is also planning three new music channels for Sky Digital customers, which are due to launch in the new year.
Ball recently hired Five chief executive Dawn Airey to fill the post of managing director of Sky Networks. Her role will include running the company's channels, except Sky Sport. Airey joins Sky in the new year.
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