Multiple Analogue Component system, this was thought to give
superior picture quality to the alternative PAL (Phase Alternate
Line). BSB had to design and launch its own satellite and was
unable to utilise the private Astra satellite, launched in 1988. In
1989, using Astra and PAL, Sky broadcast four channels direct to
homes in Britain before BSB had even launched its satellite, and
picture quality was found to be adequate after all. The consequent
competition between Sky and BSB for the audience resulted in
high financial losses for both companies, which led to their even-
tual merger in 1990 to form British Sky Broadcasting, or BSkyB.
This quickly reverted to being called simply ‘Sky’.
Sky is in a unique situation in Europe in that it owns the means
of distribution, the satellite, and also is a provider of the service, ie
Sky Channel. Pay-TV channels, such as Sky Sports 1, 2 and 3 and
Sky Moviemax, are also broadcast in this way by using an encoded
signal which can only be unscrambled at the user’s home by use of
a ‘smart card’. To receive one of the cards viewers subscribe to the
service in addition to the costs of the satellite system.
Channels available tend to be either general entertainment,
rebroadcast local services, or specialised or narrowcast services,
like CNN (Cable News Network).
International broadcasting is undertaken by Murdoch’s Star TV
from Singapore, using Asiasat which covers an area from Turkey
to Japan. Problems arose in 1989 after pictures of the Tiananmen
Square protests and their suppression by the Chinese authorities
were broadcast on one of the channels included in the Star
package, BBC World Service News. The Chinese government
threatened to block Star TV as it could not control the information
distributed. In order to keep the lucrative market, Star chose to
delete the BBC news from its broadcasts to China. Star TV also
broadcasts to India, where local entrepreneurs with satellite dishes
took the opportunity to cable their neighbourhoods and set up as
small-scale service operators. There are now over 60,000 cable
operators in India. India had previously only had a state-
controlled monopoly service, Doorshana, which was used basi-
cally as a government information channel and was consequently
thought to be dull. Star also bought 50 per cent of local station Zee
TV in December 1994, a station aimed at the younger end of the
market.
Sky now offers over 90 different television packages, including
over 200 television and digital radio channels starting at £13.50 per
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