Beeb mulls free digital film channel

Jon Rees12 April 2012

THE BBC is talking to commercial stations about joint plans to launch a free digital film channel. It would rival subscription services such as Sky Movies and Channel 4's Film4.

The idea is controversial because the BBC would be encroaching on areas in which commercial companies have invested large sums. It would also take the BBC one step closer to running a service funded by advertising.

The idea is understood to have emerged from talks led by BBC director-general Greg Dyke and including ITV and Channel 4 about ways to encourage more people to switch to digital. One way is to offer a cheap set-top box and a selection of about 20 free channels.

This plan, called Boxco, aims to boost the take-up of digital. About 40% of households have digital TV but growth seems to have stalled. The analogue signal is to be switched off in 2006.

One senior television executive said: 'They were looking at how they could make the free package as attractive as possible. A film channel would be pretty fundamental. But the commercial stations are wary because they want to protect their own operations from being undermined.' The BBC said the idea of a film channel had been raised but it had no immediate plans to proceed.

The corporation invested nearly £200m in its digital services last year and this is increasingly difficult for it to justify unless digital television is universally available to licence-fee payers. Hence the need for Boxco.

Lottery operator Camelot is in talks with the BBC about a long-term deal to show the twice-weekly draws. A £1.1m-a-year contract to screen the draws finishes at the end of next month. But the BBC has been given a further four months while both sides hammer out a more permanent agreement.

Camelot had been talking to ITV, but was concerned that ITV would not put enough resources into the show - watched by about 8m people - and guarantee a prime-time slot.

The BBC will pay about £20,000 a show to Camelot under the latest deal. Camelot and the BBC are understood to be looking at showing an extra daily lunchtime or early-evening draw programme to lure new players.

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