BSkyB has high hopes for the free satellite service, which it believes will be an important source of subscriber revenue in years to come.
The satellite broadcaster plans to lure new customers who may eventually switch to or start using pay-TV services, but who do not want to pay a monthly subscription fee.
Freeview, which is owned by the BBC, BSkyB and Castle Communications, launched in 2002 and now offers 50 channels free on the purchase of a set-top box, which can cost as little as £49. In total, there are almost 4.4m Freeview boxes and integrated digital televisions in the market, according to the latest reports, and the service has gone from strength to strength.
Freesat will only be available direct from BSkyB, unlike Freeview which is sold in retailers like Dixons and Currys.
The Freesat package comes with a digital set-top box, satellite dish and free installation.
It was the first major initiative revealed by James Murdoch since he took over as chief executive from Tony Ball in November last year.
However, Freesat has been launched with little media fanfare. That is believed to be because Murdoch is keen not to attract too many viewers away from digital subscription, in order to meet the Sky quota of 10m subscribers by 2010.
A spokesperson for BSkyB said: "We think it is a really good offer for customers. It is not our core business. We will continue to focus our marketing efforts on the promotion of our pay-TV services."
Freesat will offer programmes ranging from news and documentaries to drama and comedy, as well as youth channels, sport channels, music channels, radio stations, news channels, Disney and films.
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