Pearson may supply pay-TV channel

Pearson, the media and information giant, is in negotiations to supply TV programming for a new channel that would broadcast matches of the Premier League, according to informed sources.

The new pay-TV channel, proposed by media companies Carlton and Mirror Group, would only go ahead if a consortium backed by Mirror and Carlton win the TV rights to Premiership football matches from 1997.

Those rights are currently held by BSkyB, the satellite broadcaster owned 40 per cent by Rupert Murdoch, which is negotiating to renew its pounds 304m, five-year contract.

Mirror and Carlton are believed to be offering at least twice that amount in a revenue-sharing deal with the Premier League. BSkyB has radically increased its bid, and is believed to be offering a similar split with the Premier League. It has pre-emptive rights to match any competing offer, under terms that are being investigated as part of a wide-ranging inquiry by the Office of Fair Trading.

Mirror and Carlton's proposed channel, tentatively called Premiere, would feature exclusive broadcasts of Premier League matches, in addition to general entertainment programming. Analysts speculated last night that they could also use their existing cable channels, Carlton Select and LiveTV, to broadcast additional games.

Pearson Television is negotiating to supply both new programming and archive material from its extensive library, which includes the rights to programmes made by Thames Television and Grundy Worldwide, two subsidiaries. Greg Dyke, chief executive of Pearson Television, is believed to have had a central role in launching the talks.

However, Pearson will not be part of any consortium applying directly for the Premiership rights, Frank Barlow, chief executive of Pearson, confirmed to the Independent.

"No, we will not be bidding," Mr Barlow said. "BSkyB will bid what it needs to in order to win and we won't compete against that."

Pearson and MAI, Lord Hollick's media group, looked closely at the prospects for a Premiership bid toward the end of last year. A decision not to proceed was taken at a board meeting of Pearson Television earlier this year, although a senior executive of the television subsidiary has continued to brief the board on Premiership developments.

MAI has declined to comment on whether it is still contemplating a bid with other partners. Granada held preliminary talks with Carlton about forming a consortium, but withdrew late last year. Neither Carlton nor Mirror Group would comment yesterday.

Although most ITV companies have ruled out bidding for the rights, the ITV network could bid for the highlights of League matches, currently aired on the BBC. It is believed these rights could fetch as much as pounds 20m a year in the next contract round, up from pounds 8m currently.

BSkyB is believed by most analysts to have the inside track for the next exclusive contract, although regulators could pose obstacles. Sky is proposing a digital service that would allow all Premiership matches to be broadcast. Viewers would also be able to purchase "season's tickets" giving them access to all the games of their home team.

Sky is also proposing services including viewer-selected camera angles, slow motion and other innovations made possible by digital technology.

Media, section two