BSkyB has confirmed its competitors' fears that it plans to launch an entertainment channel on the free-to-air Freeview platform.
The launch of a so-called Channel 6, backed by Sky's gargantuan cash flow, would be bad news for the five existing terrestrial channels, particularly ITV, Channel 4 and Channel 5, which are already struggling to maintain their share in a multi-channel universe.
The BBC launched Freeview, a free-to-air digital TV service with 30 channels, in October 2002 with the backing of Sky and transmitter operator Crown Castle following the collapse of pay-digital platform ITV Digital.
BSkyB, part of Mr Rupert Murdoch's global satellite network, currently has three channel slots on Freeview for Sky News, Sky Sports News and Sky Travel. Media analysts have long suspected that the travel channel is a placeholder that would become an entertainment channel in time.
A mainstream entertainment channel on Freeview would allow Sky to extend its brand and advertise for its pay-TV network.
The company has made its fortune by moving customers up the ladder from less expensive packages to premium-priced bundles, and a free-to-air channel would serve as a new, easily accessible rung.
Channel 4 also plans to launch another channel on Freeview, tentatively called More4. The plan is in the concept stage but was approved by the channel's board this week.