Apple to launch iTunes TV service in Britain

By Kate Holton

LONDON (Reuters) - Apple will sell television programmes in Britain via its iTunes store as part of its push to become a one-stop shop for digital entertainment, the U.S. company said on Wednesday.

Apple, which launched a similar service in the United States in 2005, said programmes such as Lost, Desperate Housewives, Ugly Betty, Commander in Chief and South Park would be available for 1.89 pounds an episode and it expects to add more content soon.

Users will be able to download and keep the programmes, which will be in near-DVD quality, and watch them on a computer, fifth generation iPod or widescreen TV.

"We're thrilled to bring TV programming to the iTunes Store in the UK," said Eddy Cue, Apple's vice president of iTunes, in a statement. "We've got 28 shows and expect to continue to add more great programming."

Analysts said the service would pit Apple against broadcasters such as Channel 4, ITV and the BBC which have launched their own on-demand services in the last year.

Channel 4, which broadcasts several U.S. programmes such as Ugly Betty and Commander in Chief, allows users of its on-demand service to either rent or keep programmes, while the BBC iPlayer offers programmes for renting from the previous week.

The ITV service provides live programmes, a 30-day catchup service and access to its archive, while satellite broadcaster BSkyB offers Sky Anytime, a download service which allows viewers to watch programmes either through pay-per-view or downloading to keep.

The launch of on-demand services, billed by some television executives as the biggest change in the way viewers watch TV since the switch to colour television, comes in response to viewers who are turning away from the traditional TV schedule.