ITV acquires Freeview operator SDN

The battle to claim territory on the digital terrestrial platform has intensified further today with ITV's acquisition of SDN.

The broadcaster has paid £134 million in cash for the multiplex operator, plus an additional £15 million dependent upon the outcome of Ofcom’s ruling relating to the pricing of the five channels licensed by SDN to Channel 5.

SDN holds the licence to operate DTT multiplex A, which currently broadcasts ten channels: Five, QVC/S4C, UKTV Gold/Boomerang, Bid TV/S4C2, Price-Drop TV/Screenshop, TCM/ABC1, Discovery/Discovery H&L, Teletext Holidays, UKTV Style/Cartoon Network and xtraview.

ITV CEO Charles Allen said that the acquisition would initially provide the company with carriage revenues but crucially, on a long-term basis, the potential to launch more of its own channels on Freeview.

"This acquisition is another step in ITV’s strategic development and positions it well for future growth," he explained.

The ten channels are currently on contract through 2010, after which ITV will be free to use the space as it desires. A spokesman added that new technological advances could see an eleventh channel introduced in 2007.