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Milan (pte016/14.12.2004/10:55) - Italian media group Mediaset http://www.mediaset.it has joined up with eight of the top Serie A clubs for a venture that is set to compete with Rupert Murdoch's Sky Italia for footballing rights. As the Media Guardian http://www.mediaguardian.co.uk reports, as from January 1st 2005, as a part of a soft launch of the pay-per-view offering, Italian football fans will be able to buy prepaid cards over the Internet or from local kiosks to watch specific home games.
The move by Mediaset, owned by Italian Prime Minister Silvio Berlusconi, is regarded by analysts as a bid to enhance the take-up of digital terrestrial television in Italy. The government has already provided millions of free digital set-top boxes in an attempt to complete digital switchover by the end of 2006. However, others see it as a blatant attempt by Berlusconi, who also owns Italian giants AC Milan, to compete with Rupert Murdoch's local satellite group Sky Italia.
"From Mediaset's perspective, anything that slows the growth of Sky is good news," a London-based analsts was quoted as saying. However, Sky Italia has refused to accept that the move will make a significant difference. "We don't believe it fundamentally changes the business model..we don't see it as a comprehensive threat to us," said its chief executive Tom Mockridge.
Although pay-TV group Sky Italia, which has 3 million subscribers, has been making losses, analysts estimate that its games provide Sky with about 40 per cent of its annual turnover. However, the popularity of the rival offer could prevent Sky from reaching its target of 4 million subscribers by the end of next year. Around 1 million Italian homes are expected to have received a free digital set-top box by the end of this year.
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