Granada, now part of the newly merged ITV, already has an existing partnership with Sky in GSkyB out of which comes Granada Plus, currently available on Sky. The new channel is tipped to have an emphasis on drama.
According to The Independent, Sky either wants ITV to buy it out of Granada Plus or make the new channel a joint venture. It is understood that Sky would like ITV3 to be a pay channel.
The new channel could end up competing with the UKTV-owned channels G2 and UK Drama, which runs contemporary BBC shows such as 'Spooks' and 'State of Play'. UKTV is a joint venture between the BBC and Flextech.
ITV has also outlined plans for a new ITV Kids station to help it claw back some of the ground taken by the BBC in the children's market with its two digital stations CBBC and CBeebies.
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