BSkyB scoffs at ITV's measly £5m offering

BSkyB has refused to allow ITV access to its user base, denying the terrestrial channel the opportunity to move onto Sky's digital platform.

After shunning the opportunity to get on board with Sky in October 1998, ITV decided to follow BBC and Channels 4 and 5 into the Murdoch fold in March this year.

However, problems have arisen over price as BSkyB is requesting £20m for the user base access agreement while ITV is only offering around £5m.

ITV's offer is below the price per user required, according to a source within Sky, who asked: "Haven't they heard of inflation?"

The TV channels that took a risk and signed up with BSkyB in 1998 are on contracts that cost around 20p per user, whereas ITV would be charged 30p as defined by Oftel regulations.

ITV is available via its own ITV Digital offering in addition to traditional terrestrial broadcasting. ITV digital carries a broad selection of Sky channels, such as Sky Sports and Sky One.

Further issues to be considered in the deal include how advertising and the availability of ITV's 16 regional variations are to be controlled, according to the Sky source who added: "The ball very firmly remains in ITV's court."