BSkyB yesterday announced a pay-TV service that it hopes will be able to show Premier League football and films using rooftop antennas.

The service, Picnic, requires approval from Ofcom, the communications regulator, but in an attempt to win favour for the plan Sky said it would show Sky Sports 1, Sky Movies and entertainment channel Sky One on digital terrestrial for the first time.

No pricing information was provided by the satellite broadcaster, 39.1 per cent owned by News Corporation, parent company of The Times, but the service is likely to cost about £20 to £25 a month and will serve as a discount offering to its satellite service. Telephone and internet services will also be available.

The plan involves the withdrawl of Sky’s existing Freeview channels, Sky News, Sky Sports News and Sky Three, an entertainment channel. Sky also hopes to broadcast children’s and factual channels during the day on Picnic and, if Ofcom allows it, reconnect Sky News to provide a fourth 24-hour channel.

Sky’s Picnic strategy is designed to woo customers in the mid and low ends of the market – those unwilling to pay for the full service, which can cost more than £50 a month, and those happy with the no-cost Freeview option. Chasing such customers is widely seen as the promising growth area in pay television, with Setanta already offering some Premier League games for £9.99 a month.

Last month, Neil Berkett, acting chief executive of Virgin Media, told investors that he wanted to focus on the six million homes in the mid-market and eight million-plus who are more comfortable with Freeview.

The cable company is willing to concede that it is unable to break Sky’s 85 per cent share of the six million homes in the high-end market, according to research prepared following investor meetings by Credit Suisse.

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