Sky TV's push into high definition

Sky TV, controlled by Rupert Murdoch's News Corp, said today it was spending $22 million over two years on high definition broadcasts.

It aimed to get 80,000 set top boxes installed.

The investment would cut earnings before interest and tax (ebit) by $10m in 2009, and $12m the following year, however, it forecast earnings before interest, tax, depreciation and amortisation to rise $9m and $21m in the respective years.

The new high definition set top boxes would cost $599 or could be rented for $15 a month.

Sky shares fell 4 cents to $4.60 after the announcement.  

- NZPA