ITV looks to expand digital presence as it buys SDN for £134m

by Sam Matthews, Brand Republic 28-Apr-05, 08:50

LONDON - ITV has acquired channel operator SDN for £134m, giving it control over the digital multiplex that broadcasts 10 digital channels including Five and Disney and the potential to launch new ITV digital channels from 2007.

ITV will pay £134m in cash for the United Business Media- and S4C Digital Media-owned business, which holds a licence from Ofcom to broadcast channels on one of the six multiplexes on the DTT platform, principally used by Freeview.

It may have to pay an additional £15m depending on the outcome of an Ofcom ruling relating to the pricing of five channels licensed to Five. An announcement is expected in the next few months.

The acquisition will give ITV a new source of revenue from the channels occupying the multiplex, including UKTV Gold, QVC, Discovery and Cartoon Network.

In addition, it will give ITV the opportunity for additional broadcast capacity from 2007, as technological advances may see new channels added to the multiplex.

ITV chief executive Charles Allen said: "Initially, ITV will benefit from a new source of revenue but critically, this ensures that ITV has the opportunity for future capacity on the digital platform where its highly successful family of channels performs best."

ITV currently has five channels on Freeview after it paid in the region of £5m to buy an extra channel slot from Crown Castle.

The network's portfolio of channels has performed consistently well for ITV, with ITV2 and ITV3 regularly winning the ratings battle for multichannel audiences.

ITV is expected to launch ITV4 as a rebranded version of Men & Motors later this year.

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