Sky has secret plan for advert-free TV

BRITISH Sky Broadcasting, the satellite television company, has drawn up secret plans for a service to allow viewers to avoid watching adverts, the Sunday Telegraph reported today.

If implemented, the technology could transform the UK television industry and pose a huge threat to ITV, Channel 4 and Five, which rely almost entirely on advertising for their revenues, claims the newspaper. In contrast, Sky derives 80% of its revenues from subscriptions.

BSkyB's plans are likely to arouse the interest of regulators and reignite the debate about its power in the UK television market.

Though ITV and Channel 4 are best known as terrestrial television providers, an increasing number of people watch their channels and others using Sky's satellite platform. If these viewers no longer watched the adverts it could have a dramatic impact on ITV and Channel 4's ability to sell advertising and the rates they can charge.