ITV Digital presents plan to BBC and Sky

LONDON - The ITV companies Carlton and Granada have presented their plan for the future of digital TV to the BBC and BSkyB, which is thought to comprise a three-tier pricing structure that will help secure the future of the troubled venture.

The plan calls for the introduction of a free digital TV service carrying all the basic channels, including the new youth channel BBC3 and entertainment channel Sky One. It will be followed by mid- and premium-priced digital TV packages.



The mid-price package would carry a price tag of around £20 a month while the premium service would be charged at around £40 a month.



It is understood the mid-price package would include the Discovery channels, music channels such as MTV and The Box, UK Gold and the other BBC/Flextech channels, such as UK Food and Play UK. It would also include a basic sports package of ITV Sport and Sky Sports One.



Last week, it was revealed that plans to boost ailing ITV Digital moved on as ITV opened talks with BSkyB about joining a digital broadcasting coalition, which already includes the BBC and Channel 4.



The coalition has been proposed by terrestrial broadcasters as a way of cutting costs at ITV Digital and boosting the whole digital TV market.



The plan calls for terrestrial TV companies to join together to allow consumers to buy a cheap entry-level set-top box for around £100, through which they could receive 20 free channels, including UK Gold.



It is now thought the coalition is approaching BSkyB with a view to bring its programming into the venture.



BSkyB chief executive Tony Ball said: "There might be an opportunity for Sky to participate in that free-to-air service with a couple of channels."



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