Satellite television promised to revolutionise viewing, but in the cut-throat world of 1980s business the clash of technology and commerce prompted a battle for broadcast from space.
The origins of satellite TV
Science fiction author Arthur C. Clarke proposed in 1945 that three satellites orbiting above the Earth would be able to relay a television signal around the world. His vision was achieved in 1967 when Our World became the first simultaneous, worldwide broadcast. But it was many years later before a permanent television service by satellite would be achieved.
Getting Satellite Television to Viewers' Homes
The European Space Agency (ESA) allowed test transmissions from its Orbital Test Satellite in 1981. One hour of entertainment a day was broadcast to a ground receiver and delivered to viewers’ homes by cable. The following year Satellite Television Ltd. developed into a full service with the channel Super Station Europe. Initially only available to some Scandinavian countries, it arrived in the UK in 1983.
That same year the majority of the company’s shares were bought by News International, owned by media tycoon Rupert Murdoch, who would go on to play a significant role in the development of satellite television.
White House Photographic Collection, 1/20/1981–1/20/1989, Public domain, via Wikimedia Commons
Image source
for Ronald Reagan and Rupert Murdoch shake hands and smile in the Oval Office of the White House as Charles Wick looks on
Direct broadcast by satellite (DBS) promised to transmit satellite television directly into viewers’ homes, avoiding the need for cables. Each country was allocated five DBS channels. In 1983 a consortium including the BBC won the contract for the UK. The high cost of setting up the service included launching their own dedicated satellite and proved too much for the public broadcaster.
In 1984 Murdoch renamed his service Sky Channel but failed to win the DBS contract when the competition was relaunched in 1986. The winners were a consortium of commercial partners who established a new company British Satellite Broadcasting (BSB). The rivalry between Sky and BSB would power the race for satellite television in the UK.
What was the Eureka project?
One of the obligations of winners BSB was to deliver the new satellite television system using the experimental D-MAC standard. Just as PAL had introduced higher definition to television in preparation for colour in the 1960s [HYPERLINK - The history of colour TV in the UK | National Science and Media Museum], D-MAC was being tested to pave the way for high-definition television using HD-MAC.
A pan-European initiative named Eureka 95 was set up to research and develop the technologies required to bring higher resolution 1250 line images to television screens. MAC (Multiplexed Analogue Components) would also allow digital stereo sound, wide screen images and a clearer picture when broadcasting by satellite.
Eureka trials objects
There is a full collection of equipment used in the Eureka trials in our collection:
For satellite D-MAC seemed like the obvious solution – it would future proof the technology and offer superior viewing in the meantime. In 1986 the EU required all national DBS systems to be delivered using the standard, replacing the ageing and divided systems of PAL in the UK and SECAM elsewhere in Europe.
BSB would encrypt their television signal as D-MAC and viewers at home would connect their satellite dish to a box that converted the signal for viewing. As well as new equipment in the home, BSB launched a dedicated satellite to carry the signal, Marcopolo 1 on 27 August 1989.
Sky wars: The race to launch satellite TV
BSB continued to invest heavily in their service, preparing a slate of high-end programming across four channels and constructing the landmark Marco Polo House as their headquarters. Already delayed by rounds of competition and facing the impacts of developing the necessary cutting-edge technologies, the launch of the service was pushed back to 1990.
Sky were ruthless in their attempts to launch ahead of their rival and saw their opportunity. Renting space on the existing Astra 1A satellite, Sky launched Sky Television Network on 5 February 1989. The four-channel service included Eurosport, Sky News, Sky Movies and Sky One, the new name for Sky Channel. Programming relied heavily on American imports, including the popular WWF (World Wrestling Federation).
To access the signal, viewers had to install large dishes on the side of their homes, connected to a decoder inside. The Astra 1A satellite only allowed broadcasts in PAL and analogue audio, providing lower quality sound and vision.
Sky had won the race but BSB were confident they could win over the public, finally launching more than a year later on 25 March 1990. Due to a late change in regulation BSB were able to launch five channels: The Movie Channel, Galaxy, The Sports Channel, Now and The Power Station, all received via the distinctive and more discreet ‘squarial’ dish.
Reflecting the high technical quality of their broadcast systems, BSB commissioned high-end branding from the agency Lambie Nairn to create elaborate idents for each of their channels. Unfortunately, it was too late: Sky had managed to attract more subscribers, but both companies were losing money fast.
Satellite goes supernova
Having won the DBS license, BSB were expecting to be the primary satellite provider in the UK and did not compromise their high-end vision or regulatory commitments. In contrast, Sky was born out of commercial competition and—supported by Murdoch’s News International—could take financial risks to secure hold of the market.
On 2 November 1990 the two companies merged to form British Sky Broadcasting (BSkyB). The 50:50 merger created a new company, but the public name ‘Sky’ gave an indication of the reality of the new service.
The merger bypassed regulatory approval, which put the DBS license at risk. Broadcasts were switched to PAL standard and the nine channels were rationalised, with most closing by 1991. The last BSB channel went off air on 31 October 1997, when The Movie Channel became Sky Movies Screen 2. The Marcopolo satellite, its back-up Marcopolo II and Marco Polo House were eventually sold off and BSB equipment became redundant.
Sports and American imports
The unique technology of satellite television helped distinguish it from terrestrial broadcasters. Encryption of the satellite signal allowed channels and broadcasts to be restricted. Sky Movies was encrypted on 5 February 1990, becoming the first pay television channel in the UK. Later that month it broadcast a Mike Tyson boxing match and on 16 March 1996 Mike Tyson vs. Frank Bruno became the first pay-per-view event on UK television.
Sports would prove to be a lucrative offer for Sky. In 1992 it partnered with the BBC to secure broadcasting rights to the Premier League for £304m. It was an aggressive move which paid off and the company turned a profit for the first time later that year. The following year it launched Sky Multichannels, offering a larger package of third-party channels, all of which ran on a subscription model.
Another important early acquisition was the exclusive UK rights to The Simpsons, which Sky began broadcasting on 2 September 1990. Imports of high-profile American shows attracted viewers and have remained a key feature of Sky programming. This included many shows originating on the American pay network HBO and eventually evolved into a dedicated channel, Sky Atlantic, in 2011.
The ambitious Eureka project ended in 1994 with emerging digital technologies providing stronger solutions to high-definition broadcasting than HD-MAC. On 1 October 1998 Sky Digital became the first UK digital service, which significantly improved sound and picture quality, overcoming the limitations of the early satellite service.
21st-century Sky
When BSB and Sky merged, Rupert Murdoch became Chairman—and while the aggressive business strategy bore his trademarks, Murdoch only owned 60% of BSkyB. When BSkyB was floated on the stock exchange in 1994 that was reduced to 39%. The restriction limited Murdoch’s influence over Sky, which formed an integral part of his media empire.
After installing his son James Murdoch as Chairman in 2007, News Corporation made a bid to acquire control of Sky in 2011. The takeover was derailed by the phone hacking scandal in which News International papers were implicated. The bid was withdrawn but attempted again in 2016 by 21st Century Fox, the new name for Murdoch’s broadcast media assets. This time a bidding war erupted between Fox, itself being sold to Disney, and Comcast. Comcast won the bid and subsequently bought the remaining Fox shares on 4 October 2018, bringing an end to Murdoch’s battle for control of satellite television in the UK.
Satellite Television in the Age of Streaming
Today, television by satellite is just one of the services Sky offers. Broadband has revolutionised television distribution by cable and Sky’s broadband service sees it once again return to its earth-bound cable routes. In an echo of the short-lived BSB channel, Now—launched as NowTV in 2012—is a multichannel internet television subscription service that provides access to Sky’s media library.
Even the hardware that defined satellite television has changed. In 2021 Sky launched Sky Glass, a standalone unit that incorporates the television screen and provides Sky services over Wi-Fi, as the advertising suggests: "No dish. No box. No fuss".
The battle for satellite television is over and Sky has become a key player on UK television screens.
Find out more
Sky: Our History (Our history | 1989 - 1999 | Sky Group)
Murdoch Mortgages BSkyB Stake, The Independent (Murdoch mortgages BSkyB stake | The Independent | The Independent)
Analysis: Murdoch and media ownership in the UK, BBC News 22 Dec 2010(Analysis: Murdoch and media ownership in UK - BBC News)
