TH
The only really successful pay DTT operators have been those in Scandinavia where the free-to-air offering is very limited and many important channels are behind a paywall. The DTT operators in those countries (Boxer Sweden/Denmark and RiksTV Norway) have generally focused on offering a basic package, with premium content playing a smaller role.
It is conceivable that a pay DTT service would have been more popular if the free content was still limited to the terrestrials, the BBC channels, ITV2 and shopping channels and the pay service was focused on offering the ten most important basic satellite/cable channels (e.g. the most important entertainment channels and the leading thematic channel in each genre) for an affordable price. But that would have moved break-even further away. Boxes were still very expensive, so it would have been hard to subsidise boxes and still make a profit. Going for a potentially more lucrative market may have been the sanest way to execute the madness.
The Scandinavian services didn't really take off until the analogue switchoff was underway. Boxer Sweden was a taxpayer-funded ITV Digital-like failure for many years, and Boxer Denmark didn't even launch properly until after switchoff. OnDigital would either have had to launch much later or switchoff would have had to take place much earlier, or they would have been treading water for almost a decade.
It is conceivable that a pay DTT service would have been more popular if the free content was still limited to the terrestrials, the BBC channels, ITV2 and shopping channels and the pay service was focused on offering the ten most important basic satellite/cable channels (e.g. the most important entertainment channels and the leading thematic channel in each genre) for an affordable price. But that would have moved break-even further away. Boxes were still very expensive, so it would have been hard to subsidise boxes and still make a profit. Going for a potentially more lucrative market may have been the sanest way to execute the madness.
The Scandinavian services didn't really take off until the analogue switchoff was underway. Boxer Sweden was a taxpayer-funded ITV Digital-like failure for many years, and Boxer Denmark didn't even launch properly until after switchoff. OnDigital would either have had to launch much later or switchoff would have had to take place much earlier, or they would have been treading water for almost a decade.

