After months of speculation whether to launch the new channel on a free-to-air basis like ITV2 or to restrict it to a pay-TV only, ITV chief executive Charles Allen has revealed that the third ITV channel will broadcast as a free channel on Freeview, BSkyB's Freesat, which is itself set to launch in October, and cable television.
It is understood that Sky approached the broadcaster with a number of incentives to make ITV3 a pay-TV only offering. BSkyB will be disappointed by the outcome because Freeview is already outselling Sky by a rate of 10 to one.
Talks on the future of Granada Plus, a joint venture with Sky, and ITV's satellite carriage deal, due for renewal later this year, are linked with the negotiations but nothing has yet been decided.
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