Competition
Sky's head start over BSB proved that the PAL system would give adequate picture quality and that many viewers would be happy to watch Sky's more populist output as opposed to waiting for the promised quality programming pledged by BSB. Sky had also launched their multi-channel service from studios at an industrial estate in Isleworth, west London with a 10-year lease on SES transponders for an estimated £50 million without backup. BSB, on the other hand, would operate from more expansive headquarters at Marco Polo House in Battersea, south London with construction and launch of its own satellites costing an estimated £200 million.
When BSB finally went on air in March 1990, 13 months after Sky, the company's technical problems were resolved and its programming was critically acclaimed. However its D-MAC receivers were more expensive than Sky's PAL equivalents and incompatible with them. Many potential customers compared the competition between the rival satellite companies to the format war between VHS and Betamax home video recorders and chose to wait and see which company would win outright as opposed to buying potentially obsolete equipment.
Read more about this topic: British Satellite Broadcasting
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