Five to launch two Freeview channels

Channel Five is to launch two new free-to-air stations, providing extra competition for ITV and helping make the Freeview service more attractive against BSkyB.

The new channels, called Five US and Five Life, will go on air on the Freeview platform in the autumn. Five, which is a lone, free-to-air channel at present, has long sought a multichannel strategy to take a bigger "footprint" in homes with digital television. It has fallen behind the rivals ITV, Channel 4 and the BBC, which have established digital franchises.

Five US will bring American programmes to viewers, including drama, comedy and youth shows. The existing Five station has had success with US shows such as the CSI: Crime Scene Investigation series. Five Life will be aimed at a female audience and will also broadcast Milkshake!, Five's programme for pre-school children.

Analysts said the new stations for Five would create additional competition for ITV in homes with Freeview. However, an offering that makes the 30-channel Freeview service more attractive is still better for ITV than seeing consumers take out a subscription to Sky or cable, where its stations get lost in a service offering hundreds of choices.

For Sky, the runaway growth of Freeview is becoming an increasing problem, according to analysts. By the end of this year, Freeview will have more "unique" homes - ones without access to another TV service - than Sky.

Five is buying the capacity for the channels from Top-Up TV, the only subscription service available to Freeview homes. In a change in strategy, Top-Up will turn into a service where programmes are downloaded overnight and stored on a personal video recorder.