Arts channel gives up the struggle and sells to Sky

Pay television is reputedly more resilient than free-to-air in an economic downturn - but it is not immune from tough times in this country's tiny TV industry.

Arts Channel owner David Ross said it had become just too difficult to run in privately and he had sold it to Sky TV.

"It was a passion and my biggest concern was to ensure that it continued, and the best way of doing that was to be with Sky," he said.

Arts Channel subscribers pay extra on top of their Sky basic subscription and because the channel does not have ads it has escaped the advertising downturn. But Ross said that it had been difficult to draw new subscribers.

Sky TV chief executive John Fellet said Sky could more easily build numbers. Sky has attempted to broaden the appeal of the channel by offering more popular fare such as The Eagles in Concert and The Darling Buds of May. Ross said that Sky would not be willing to forsake subscription revenue making the Arts Channel available as part of the basic Sky subscription.

In March this year the independently owned and advertiser-funded music channel Alt TV went bust.