UPDATED: Sky TV move crimps Freeview expansion

There was nothing definite, but Irvine noted that as the number on Freeview increased (as it inevitably will, ahead of the 2012/2013 analogue TV switch-off), economies of scale would make it easy for the consortium’s members to cover the cost of transmitting new channels, and to add more content as advertising revenue increased.

Yet, in answering, Irvine revealed also yet another Sky TV move that crimps the free-to-air broadcasters’ digital platform.

Sky TV monopolises satellite
“Unfortunately there is no capacity left on the [Optus D1] satellite as all the spare capacity on the existing polarity is reserved for use by SkyTV,” Irvine said.

“So the expansion of the Freeview content and service offering will almost exclusively be on the Freeview HD platform - either terrestrially or via IP [broadband internet] which is where access to content for the UFB becomes important.”

Why is it a problem that Sky TV has monopolised the D1 satellite?

After all, Freeview’s satellite service is only SD (standard definition digital), while Freeview HD, broadcast from terrestrial Kordia towers, is full high definition?

Because Freeview’s satellite service provides 100% coverage, whereas Freeview HD’s coverage is restricted to the 75% of the country.

In preview notes ahead of Sky TVs earnings Friday, analysts praised the pay TV provider’s continued focus on content delivered via satellite – which they see as easily the most cost effective model (bearing in mind that New Zealand is a relatively sparsely populated country, with lots of hills).

Irvine said a majority of New Zealanders want free television, and Freeview – which was set up with the help of tens of millions of government subsidies – will help them make the transition from analogue to digital TV.

But with Sky TV having bagged remaining satellite capacity – and the analogue switch-off due to begin in November next year – for 25% of the country will be limited to stunted form of Freeview.

Fun with Freeview
We've already seen Sky TV kneecap the TiVo digital recorder, backed by one-third TVNZ owned Hybrid TV, with contemptuos ease (READ: At last, some fighting words from TiVo).

Sky TV refused - and still refuses, to supply TiVo with electronic listings for its free-to-air Prime - making it a headache to record any of the channel's shows (think Boardwalk Empire, Top Gear, Dr Who, free-to-air All Black games).

That knobbled TiVo's attempts to gain any critical mass, insuring that its pay-per-view broadband service, Caspa, could never get past go.