700 jobs for MGt in Top Up TV deal

Published on Tuesday 10 February 2004 00:00

SCOTTISH technology group MGt has won a multi-million pound contract from a new digital television firm which it claims could create as many as 700 jobs over the next three years.

Fife-based MGt, which already counts ITV, Channel Four and Five among its customers, will provide its encryption software to Top Up TV, which launches next month offering customers using the BBC Freeview service the option to buy a package of ten additional channels, - such as E4 and UK Gold - for 7.99 a month.

But the deals risked being overshadowed by a row between Top Up and the BBC, which has been accused to trying to stifle the launch of the new service.

Privately owned Top Up, founded by two former BSkyB executives, is in dispute with the BBC over how to display its ten subscription channels alongside the corporations’s stations on the Freeview platform.

David Chance, co-founder of Top Up and former deputy managing director of Sky Television, accused the BBC of refusing to allow the network to use vacant channels on Freeview, and has complained to Ofcom, the new media regulator.

Mr Chance, who formed the business along with Ian West, former managing director of Sky Entertainment, said: "It looks to us as if the BBC is stalling on this issue, and we think they are out of order."

But the BBC said it did not receive any notice of Top Up’s application until ten days ago, and denied it was obstructing the launch. A spokesman said: "We are only concerned about confusion in the marketplace over what is freely available and what is a subscription service."

Freeview is now available in around three million homes, offering around 30 digital channels.

Mr Chance said he hoped to launch the Top Up service next month, and the firm expects to break even with 250,000 subscribers.

MGt will be providing its encryption software to Top Up, while also handling all customer service and billing operations from its Kirkcaldy headquarters.

Chief executive Jonathan Guthrie said: "The value of the deal all depends on how successful Top Up TV turns out to be, but it would run to millions and I see it as having the potential to become our biggest single contract.

"I think the product’s right, I think they’re targeting the right area of the marketplace and I’ve a lot of confidence in the idea."