TELEVISION:YOUVIEW, A free UK TV service combining digital channels with on-demand programming, was launched some two years behind schedule yesterday, hoping to appeal to households unwilling to shell out on pay-TV.

But the service, backed by the BBC, ITV, Channel 4, Channel 5, Arqiva, BT and TalkTalk, is entering a crowded market. Its initial offer of catch-up services such as iPlayer and digital channels available on the rival Freeview service may not make an impact, analysts say.

Lord Sugar, the businessman and TV personality brought in as YouView chairman last year, said it was aimed at the 13-15 million British households without a pay-TV deal.

YouView will have just one model of set-top box on sale by the end of the month, made by South Korean manufacturer Humax and Sugar said cheaper boxes would follow.