The dynamics of multichannel television are beginning to change as low cost channels continue to multiply. When digital television launched in the UK five years ago the majority of channels belonged to the major broadcasting groups: BskyB, Flextech and Discovery Communications. Today, as both capacity and transmission costs continue to fall the market has been opened up to the small guy.

No area has seen as much growth as the shopping channel sector. During the analogue heyday of the mid-1990s the sellers of items designed to improve the lifestyle of the purchasers might have leased a few hours overnight, the broadcasters only too happy to make a few extra pounds, airtime in the small hours sometimes running at such a premium that it was able to cover the entire cost of capacity.

Digital television has now enabled retailers to take their own space in the Sky EPG. This has allowed variations in the traditional shopping channel formula. While QVC and its imitators continue to produce the most polished of television there are now specialist shopping channels covering, golf, holidays and health supplements. While Boots the Chemist failed in its Well Being channel, Thomas Cook TV has proved there is room for a High Street retailer to leverage its brand in the TV space.

In recent weeks a new genre has appeared in the form of gambling channels, such as the Bingo-style Avago, combining conversation with familiar faces with the possibility of winning a cash prize. Behind Avago is DITG, the only company currently operating a return path facility on the Sky platform, other than Sky itself. Revenue from telephone based services can make up a significant part of a new broadcaster's income where the potential from carriage fees and traditional spot advertising is reduced.

2002 was a record year for new channel launches. Research analyst Screen Digest said in a recent study that more than 175 channels were launched during the year with no sign of the numbers slowing down during 2003. On the downside the number of channels going out of business is also on the increase. As channels head towards their three and five year breakeven targets the plug is so often pulled, though the financial risk is now much less because of the reduced entry costs.

In January 2004 TV Conferences is holding a one day seminar that will explore the business models of the new broadcasters in the second multichannel age. Delegates will be able to hear contributions from the companies involved in the process including Astra, Mgt, BT Broadcast Services, Enteraction TV, the European Television Guild and Kingston Inmedia.

Europe's Channel growth, by genre*

2002 (new) 2003 (new)

General 107 18 114 7

General (national) 108 5 112 4

General (regional) 34 4 35 1

Adult/Erotic 34 9 34 0

Business 28 6 29 1

Children's 77 11 78 1

Computer/Games 10 4 10 0

Culture 13 0 13 0

Documentary 81 8 81 0

Education 5 0 5 0

Employment 2 0 2 0

Entertainment 63 3 64 1

Ethnic 19 5 21 2

Health 3 1 3 0

Lifestyle 14 3 16 2

Male Interest 6 0 6 0

Movies 142 14 143 1

Music 74 10 75 1

News 50 8 52 2

Parliament 7 1 7 0

Professional 3 0 3 0

Promo/barker 31 6 31 6

Religion 18 2 19 1

Shopping 47 14 52 5

Sport 92 10 92 10

Travel 15 2 15 0

Weather 3 0 3 0

Women's Interests 10 0 11 1

Misc 6 1 6 0

Total 1102 145 1132 30

Data: Screen Digest