Sky wins DSO help scheme cash for Border

Sky has won a contract to provide licence fee subsidised set top boxes to older and disabled people in the Border television region.

The BBC-funded Digital Switchover Help Scheme will pay Sky to provide and install its digiboxes to eligible applicants for £40.

Sky will also provide them with free access to its Sky+ digital video recorder service and some subscription-only channels for two months. After the period, customers will choose whether to subscribe to the services or give them up.

Controversially, the scheme will see TV Licence proceeds indirectly given to the pay-TV giant.

A spokesman said Sky would be presented to those eligible for the scheme as the “standard offer” or “first choice”. They will be able to choose Freeview, also for £40, but alternative services such as Freesat - though subsidised - are likely to cost more.

Contracts to provide the subsidised boxes are being awarded separately for each TV region. Border will be the first to switch, with analogue transmission turned off between November 6 and June next year. The national DSHS budget for subsidies schemes is said to be around £500m.

Digital UK executive David Scott said the agreement would "play a crucial role in ensuring that the switchover goes smoothly for viewers in the Border TV region".

A review of the switchover in Copeland in the autumn revealed that, of those who converted to digital around the time of the change, 38% chose Sky. Digital UK said the firm “conducted significant marketing activity in the area”. Just 5% of the newcomers to Sky chose its non-subscription product, Freesat from Sky.