Sky TV to Launch New Box of Tricks

Dominion Post

By HARGREAVES, David

SKY TELEVISION plans to introduce a set-top box that will allow broadcasts in high-definition and let customers show films and programmes downloaded from the Internet.

The yet-to-be named product will be launched early in 2008, about 150 shareholders at the company's annual meeting in Auckland were told yesterday.

Sky TV chief executive John Fellet said high-definition television was "the new frontier" of technology and was visually "almost like a 3D effect". Further details of the the new product would be revealed nearer to the launch.

Shareholders were told the new Optus D1 satellite that would be providing programme coverage for Sky TV had been launched on October 14, to replace a satellite that, as chairman Peter Macourt put it, was "on its knees".

Mr Fellet said broadcasting through the new satellite should start in the middle of next month and customers should notice a stronger signal.

The new service would have greater capacity -- and more Sky TV channels would be coming online gradually.

On plans for the start of free-to-air digital television in 2007, Mr Fellet told shareholders that the way it was being promoted, as effectively the start of digital television, "will come as quite a surprise to Sky customers".

He was not able to say what the likely impact would on Sky TV. "But I think there will be a lot of confusion more than anything else in the first year."

He said after the meeting that global experience had shown that wherever free-to-air digital TV was launched, pay-TV channels ended up with greater market penetration than they had before.

Canada's CanWest Global Communications this week appointed advisers for a potential sale of its Australasian operations, which include a majority stake in the company that runs TV3 and C4.

Sky TV bought free-to-air channel Prime earlier this year.

Asked if Sky TV might consider buying the CanWest assets, Mr Fellet said he doubted if the Commerce Commission would allow such a purchase, and, in any case "it's not our cup of tea".

"We've had no discussions about it. And we've got all the free- to-air we can handle.

Yesterday's annual meeting saw only one question asked from the floor and was all over in 26 minutes. Sky TV shares gained 9 cents to $5.55.

(c) 2006 Dominion Post. Provided by ProQuest Information and Learning. All rights Reserved.

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