Recently, the free-to-air FreeView service said it added 466,000 viewers in the last quarter, taking its total to more than 5 million, reports said. Despite the numbers, British Sky Broadcasting, the News Corp.-based satellite TV service that dominates the U.K. TV scene, appears to be "unconcerned" about the FreeView challenge, said Oppenheimer and Co. analyst Tom Eagan.
"They believe they will be able to convert a significant number of analog broadcast customers to the Sky platform, following the analog switch-off, expected to start in 2008," Eagan said. "We are not so optimistic given the increasing popularity of FreeView."
The FreeView competition has compelled BSkyB to start development of a "freesat" service of its own, which will consist of 60 channels offered for free with equipment purchase. The free Sky offer "signals how powerful (and pervasive) free services have become," Eagan said.
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