Irish subscribers to the Sky satellite TV platform will be able to receive terrestrial channels from today, in a move that could enable British broadcaster BSkyB to claim 25 per cent of the TV market here. About 230,000 Irish households, which have signed up to Sky's basic package at €19 per month, may tune into RTÉ, Network 2, TG4 and TV3 in the Republic for the first time using their satellite dish.
The availability of the terrestrial channels will erase a key impediment for Sky subscribers who, up to now, have had to switch between TV platforms to view the channels.
These will be placed on the top four slots on Sky's electronic programme guide - the tool viewers use to navigate their televisions.
"We think the Irish channels coming on the platform will result in increased penetration for Sky," said Mr Mark Deering, director of Sky in Ireland. "We are now the second multichannel platform in Ireland after NTL."Analysts said last night Sky would pose a greater threat for the cable firms here following its deal with the terrestrial channels. "Customers can now use a single TV system to get access to all the channels," said Mr Gary McCloskey, Mason Communications.
He estimates there are 600,000 cable customers, 400,000 terrestrial customers and more than 200,000 Sky subscribers in the Irish TV market.
"There are still quite a number of households without multichannel television and this is an opportunity for Sky [to reach 25 per cent of the market]."
Up to now, cable firms NTL and Chorus have seen only limited erosion of their customer base due to Sky's entry.
The high penetration of cable TV here has slowed Sky's growth somewhat, but both cable firms believe Sky benefits because it is not regulated here.
"We want to compete with Sky on product and price but there must be a level playing field," said Mr Willie Fagan, director of regulatory affairs at Chorus. "Because Sky is not regulated in the Irish market it does not pay VAT at Irish rates, a levy to the regulator and it is not subject to price controls like we are."
The two cable firms must also persuade customers to switch from analogue technology to the newer digital platform. NTL and Chorus have just less than 40,000 digital TV customers between them whereas all Sky's customers are digital.
Digital TV offers consumers the ability to interact with programming in real time, and can be used to offer consumers access to e-mail and a range of multimedia or home-shopping services.
This means firms can generate extra revenue by setting up revenue share deals with partner firms. Sky will introduce interactive services here in June.
Meanwhile, RTÉ will not be able to broadcast its channels in Northern Ireland due to difficulties over the rights to broadcast movies and other foreign TV shows.
