The move will expand Disney Channel's distribution from the 1.5m homes which IHS Screen Digest estimates that it reached in 2010 via pay TV to roughly 10m homes reached by FTA satellite and pay platforms combined, although will likely come at the cost of the channel's carriage revenue stream.

The Turkish multichannel TV market is anticipated to end 2011 having generated €130m in net advertising revenues, and expected to grow at 60 per cent year-on-year through 2012 (compared to pay TV's 4.5 per cent). It is this growth on which Disney is hoping to capitalise with the expansion of the channel's reach.

Turkey has long been a market which has divided channel groups over whether to launch FTA, or opt for lower distribution via pay TV, but take a share in a more stable subscription revenue stream. While groups like Discovery have adopted a pay TV strategy in Turkey, other channel operators such as Turner have launched key channels like Cartoon Network and TNT on free satellite, considering the incremental reach of FTA of more value.

The danger for pay TV platforms in the market, such as Digiturk, D-Smart's pay offer and Turksat cable, is that if pay TV channels see greater advantage in launching FTA into an expanding multichannel ad market than in keeping the channels exclusive to pay TV and supported by carriage fees, the pay TV platforms could see content moving away from their services, and subscribers with them. A situation mirroring the Middle-Eastern market would be a worst-case scenario, with vast numbers of FTA channels a significant factor influencing the low pay TV uptake in the region.

Digiturk in particular has spent large amounts on securing the local football rights, and will be aiming to minimise ancillary content costs. However, it will have to balance this against the risk of losing more core content providers to FTA. Furthermore, with increasing broadband penetration and online video initiatives such as Turk Telekom's Tivibu becoming popular, pay TV channels will also be considering the potential value of the OTT video market - an area difficult to exploit for channels behind a pay-wall. New technology allowing pay-satellite to remain competitive in delivering on-demand services is vital in ensuring the platform maintains relevance in the Turkish market.