Is Freesat better by definition?

Both broadcasters are now moving quickly to bring programmes and sports broadcasts onto the HD platform. The BBC is lining up dramas such as Hustle, comedies and entertainment including Gavin & Stacey and Strictly Come Dancing and a host of music and arts programming and documentaries, while ITV will eventually offer live FA Cup and Champions League football matches as well as high-profile shows such as Britain's Got Talent and The X Factor.

To access the Freesat service, consumers make a one-off payment. This covers the purchase of a dish and set-top box, and installation. A box capable of receiving HD broadcasts costs about £120, plus an installation fee of about £80. Consumers arrange the installation through approved retailers (see data file). Existing Sky customers can add a Freesat box on a second TV using their existing dish.

Rebecca Jennings, principal analyst at Forrester Research, expects initial take-up to be slow. 'Freesat should be seen as a complement to Freeview and the other offerings,' she says. 'It's aiming at the 25% of the population who can't get Freeview, and those who already have HD TV sets. The HD selling point will become important as ITV and BBC push on with their offerings on that front. I think there is a good audience for it, even if it's going to be slow to take off.'

Viewers face a vast array of choices in the digital TV market, with options from Sky, Virgin Media, Freeview, BT Vision and now Freesat. Less technology-savvy consumers could struggle to comprehend the myriad options before them.

Most of the uncertainty around the new service relates to the additional benefits to viewers, who will be confused about what more it can offer them than their existing services.

Freesat's position is not yet as well defined as rival offerings, with few willing to predict its fate in the years before the UK's digital switchover is completed.

James Appleby, broadcast account director at Mediaedge:cia, believes the lack of clarity in Freesat's offer could prove a teething problem. 'The HD side of the offering will certainly help drive it forward in the future, but the immediate benefits appear hazy,' he says.

'There are limited HD channels in the UK at the moment, [so] those who have bought HD-ready sets but haven't yet used them [for that purpose] will see Freesat as a welcome service,' adds Appleby. 'Immediately, though, it's hard to see it pick up massive numbers, especially as the initial cost element is still quite substantial.'

For its part, Freesat argues that the cost is a one-off that will prove far more effective for consumers in the long run.

However, while the service is almost certain to please those unable to access Freeview, it is unlikely to have any impact among those who can, with most confused by the difference between the platforms or unwilling to undertake the fuss and expense of switching. 

One of Freesat's major benefits is the planned roll-out of broadband services via a built-in ethernet connection in set-top boxes. 'These plans are interesting and much-needed when you consider that other TV options give consumers much wider packages,' says Appleby.

The potential audience for Freesat is much smaller than that of its main rivals, but its ability to offer free HD may yet prove to be its saving grace.

Data File: Freesat 

• Freesat will initially offer 80 channels via a satellite dish. That figure will rise to more than 200 by the end of 2008.
• The service will include all BBC, ITV and Channel 4 channels, with Five set to be added shortly.
• The price of a standard-definition box starts from £49, while HD boxes start from £120. Installation costs £80.
• The boxes are available from retailers including Argos, Comet, Currys and John Lewis, plus some independents; retailers will also arrange installation.
• HD programmes are subscription-free to viewers with a compatible set-top box and TV set.