No such thing as a free launch?

BBC and ITV launched their version of freesat today. It will have significant reach and hopefully provide a viable alternative to Sky. However the details are still very unclear. Channel four is involved but not with its HD channel. Five are conspicuous by their absence. For what might be a very significant venture, it's odd that it didn't merit a press release from ITV plc. The ITV component includes exclusive HD content. HD seems to be one of the main marketing propositions, yet with the launch today all that could be said was that ITV HD will come 'in the next few weeks' and no clear idea of what it will contain. Reactions from potential viewers have been predicable. We meet ITV plc on a regular basis and have often raised concerns over their HD proposition. Unlike the BBC and Sky, ITV has been slow to recognise the importance of this format to its overall business approach. They prevaricated under Charles Allen when others acted. It''s early days for the new freesat, but the lack of joined up thinking by the PSBs seems to be a missed opportunity.

learning lessons from others

I saw this at The Register - a piece about Tescos setting up a digital download service next year:
A couple of extracts;
"...buying digital music isn't a habit that has caught on. The global market is worth $3bn annually, but that's a drop in the ocean; Reg readers pour scorn on people who actually fork out real money for digital songs - on a song-by-song basis - calling them "paytards"."
and
"Our commercial broadcasters - and the BBC - are hoping that we'll get into the habit of paying for TV shows and movies. The Beeb already sells Dr Who through iTunes in the USA, and is awaiting the arrival of Kangaroo to sell us repeats here, too. But if current behaviour patterns persist, that's only going to increase the attractiveness of PirateBay."

Apart from the fact that the Tescos venture will probably come about five years too late. I was struck by the fact that digital music downloads only produced $3bn dollars revenue last year. This makes you realise what a state the music business is currently in. With UK mainstream broadcasters - BBC and commercial - looking for salvation, with a business strategy involving Internet revenues and online programme sales, they should be careful. Illegal music downloads are outstripping legal sales by a factor of 20 to one. There is no obvious reason why the market for quality television output won't go the same way. At best the broadcasters plans look risky at worst they could be a recipe for disaster.