BBC launches Satellite TV
Why launch Freesat?
Broadcasters are eager to switch over to digital as soon as possible to cut the costs of running two systems at once. Ensuring that almost everyone in the country can get free digital is part of their campaign to persuade the Government to end analogue broadcasts sooner rather than later. The BBC and ITV may also have ulterior motives in pushing free satellite.
The set-top boxes used for Freeview and satellite come in two varieties - those with a slot that can take a pay TV card and the "dumb" variety that can never be upgraded to subscription TV. The BBC is keen to get as many "dumb" set-top boxes on the market as possible in order to protect the licence fee.
Senior managers believe that if a large number of viewers have set-top boxes that can accept pay TV cards, it makes it too easy for a future Government to demand that the BBC funds itself through subscription
I hadn't thought of that - as Freakonomics would say - look for the hidden incentive. (Good book and site by the way!)