Satellite broadcaster BSkyB has moved to recover lost ground after failing to secure the rights to screen a portion of Premiership football matches, by striking a deal with Setanta, its smaller Irish rival, that should mean all customers are able to watch every game live.

BSkyB said today that it had reached an agreement with Setanta that will enable about 40,000 pubs, clubs, sports centres and other commercial operators to receive Setanta's coverage of 46 live FA Premier League football games as from August next year.

The broadcaster said it had also come to an "in-principle" deal with Setanta that will make these matches available to residential Sky subscribers.

The deal means that all 138 live Premiership football matches will be available to Sky customers without them having to take out a separate subscription.

BSkyB, which is 37.9 per cent owned by News Corporation, parent company of Times Online, last week won the rights to screen 92 live matches in a four-package deal that cost the broadcaster £1.3 billion.

It had been expected to win five of the six that were available.

Setanta, which is 40 per cent owned by Benchmark Capital, won the other two licences at a cost of £392 million.

BSkyB declined to disclose the financial terms of today's deal, which was first reported in The Times yesterday.

However, as well as enabling Setanta to recover some of the licence costs, it should also help BSkyB to recover some of the revenues it would otherwise have lost.

Shares in BSkyB initially fell during the course of yesterday, but ended the day flat at 527p, valuing it at more than £9.5 billion.

Richard Freudenstein, the chief operating officer of Sky, said: "This is good news for Sky customers - both commercial and residential. We're please to have been able to reach agreement with Setanta to ensure that Setanta's Premiership coverage will be available on the satellite platform."

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