UK digital terrestrial pay-platform ONdigital turned in slightly disappointing end-of-year subscriber numbers, at 552,000, a 34 per cent increase on the company’s third quarter status. Within that number CEO Stuart Prebble disclosed that its pre-paid service "which has the potential to change the market" was responsible for some 50 per cent of subscriptions following its November 1 introduction. ONdigital’s investment to date is Pounds 211 million with a pre-tax loss of Pounds 148 million in the financial year ended September 30.

"We were disappointed by IDTV sales, simply because they were not available in the stores in sufficient quantity," said a senior ONdigital executive. But Prebble showed a PCXM/CIA card-sized conditional access ‘sidecar’ module suitable for adding to digitally-equipped TV sets. Prebble said the card-sized device would be issued free to IDTV-using subscribers and would be available from May. Prebble added that the company was working on the assumption that 2006 could be the analogue switch-off date.

Prebble announced that a five-channel PPV movie and event service, ONrequest, would start during this half year in a 50/50 joint venture with licence-holders SDN. "We have people in Hollywood now," said Prebble. He said that ONdigital subscribers would enjoy a Pounds 1 differential (discount) in PPV movies compared to free-to-air digital viewers (who did not subscribe to ONdigital).

Additionally, the digital transmitter roll out programme is continually adding new potential subscribers, says Prebble. "We will shortly be boosting reception from Crystal Palace adding another 1.5 million homes. E-mail (ONmail) will be added in the spring and Prebble showed a neat remote control with built-in keyboard (from Philips, but in the style of a Nokia Communicator) that will be available to users. E-mail will be free-of-charge other than for local call on-line charges.

According to a senior ONdigital source, the company expects to increase its compression ratios during this year. "We think this year we will be able to increase the potential number of channels we carry. We are talking to Divicom now, but what we won’t do is compromise the quality we now broadcast," said the source. For example, ONdigital expects to add Nickelodeon and Paramount Comedy around the end of this year. Prebble said ONdigital is on target for two million subscribers by 2002.