Investors
Freeview, Freesat and YouView
Our platforms business focuses on exploiting and managing ITV’s interests in broadcasting platforms. ITV is a shareholder in Freeview alongside the BBC, BSkyB, Channel 4 and transmission operator Arqiva. A not-for-profit consortium, Freeview exists to market the free-to-air services on the UK’s digital terrestrial television (DTT) platform.
ITV is also a joint venture partner in Freesat, which markets subscription-free digital satellite television. Freesat was launched in early 2008 by ITV and the BBC to provide free-to-air access to digital satellite, including HD services from the BBC and ITV. We will continue to support and grow the Freesat and Freeview platforms which are now used by around 11m homes as their primary source of television.
Part of our platform strategy will also be the launch of YouView, the ‘next generation of Freeview’. This will allow viewers to navigate seamlessly between their favourite Freeview channels and the most popular on demand content available from ITV, BBC, Channel 4 and Channel 5, on a subscription-free basis. YouView will be fully launched in the first half of 2012.
SDN
SDN is wholly owned by ITV and operates one of the six digital terrestrial multiplex licences in the UK which make up Freeview.. SDN earns revenues by leasing out capacity on the DTT platform to channel providers, generally on long term contracts. The channels are marketed to consumers as part of the Freeview or Top Up TV services. SDN holds a licence from Ofcom to broadcast channels over specified bandwidths on Multiplex A, one of the six multiplexes on the DTT platform that is principally used by Freeview. SDN continues to grow its revenues, and in 2010 agreed three new contracts, including the multiple videostream contract with Channel 5.
In March 2010 ITV confirmed the conclusion of a Partnership arrangement (SDN pension partnership) with the Trustees of the ITV Pension Scheme. Under the Partnership arrangements, ITV has committed to making a payment to the Scheme of up to £150 million in 2022, if and to the extent that the Scheme remains in deficit. In addition, the Partnership will make an annual distribution of £8.4 million to the Scheme for 12 years from 2011. The Partnership’s interest in SDN will provide collateral for these payments