Rediffusion

Rediffusion was a business which distributed radio and TV signals through wired relay networks. The business gave rise to a number of other companies, including Associated Rediffusion, later known as Rediffusion London, one of the first companies to win a terrestrial ITV (commercial television) franchise in the UK.

Early history

Rediffusion was the trading name of British Relay Services Ltd, formed in 1928. The company delivered cable radio service to customers frustrated with the difficulties of tuning in weak radio broadcasts. Initially, their service consisted primarily of rebroadcasts of the BBC Radio service; this was reflected in the trading name: Rediffusion simply means "broadcasting again".

Rediffusion quickly branched out into making, renting, and selling radios. With the arrival of the first experimental television broadcasts in the 1930s, Rediffusion quickly began manufacturing TV sets and supplying "Pipe TV" service to their customers, until the cessation of television broadcasts during World War II.

Post war

In 1947 British Electric Traction acquired a substantial minority interest in Rediffusion. BET acquired a controlling interest in 1967, and the remaining 36% of equity in 1983. [* [http://www.competition-commission.org.uk/rep_pub/reports/1985/fulltext/184c03.pdf Competition Commission report, 1985] The assertion on some websites that BET controlled Rediffusion from its inception does not appear to be right.]

In 1948 Rediffusion established Redifon Ltd as a manufacturer of naval (and later flight) telecommunications equipment.

After the war, Rediffusion began operations in several then British colonies. These included holding the concessions for wired and over-the-air radio and television stations. A subsidiary company, Overseas Rediffusion, operated these stations and also sold advertising time and programming for them. Stations included the radio station Rediffusion Barbados [http://www.starcomnetwork.net/aboutus/index.htm] , Singapore, Malaysia, Thailand and the wired television service Rediffusion Television in Hong Kong, the latter now known as Asia Television.

BET's financial resources enabled Rediffusion to capitalise on the growth in post war television, which restarted in 1946. Initially, the company installed cable TV systems in blocks of flats in London, and over the next few years expanded outside London. The company was also involved in the sale and rental of television sets.

Expansion into broadcasting

With the passage of the Television Act 1954, Rediffusion joined forces with Associated Newspapers, a subsidiary of Daily Mail and General Trust, to form Associated-Rediffusion, and won the coveted London weekday ITV broadcast franchise. They began broadcasting on September 22, 1955.

At the beginning, Associated-Rediffusion was losing money amazingly fast; so fast, in fact, that by the end of 1956, Associated Newspapers sold 80 percent of its stake back to BET and Rediffusion at a severe loss. Around that same time, Associated-Rediffusion struck a very favorable deal with Granada Television, the franchise holder for weekday broadcasts in the North of England. Granada was also losing money hand over fist, and lacked the financial resources of BET; the deal guaranteed Granada a certain level of financial security, at the cost of Associated-Rediffusion receiving the vast majority of future profits from their arrangement.

By 1964, when Associated-Rediffusion changed its name to Rediffusion London, their efforts had left them sitting on a veritable mountain of cash; and it is arguable that the attitude which that success spawned may have led to the decision by the Independent Television Authority in 1967 to effectively unmake them. Rediffusion London was ordered to merge with Associated British Corporation, the holder of the weekend Midlands and North of England franchises, to form Thames Television, with ABC given the controlling interest (despite their generally weaker financial position) and Rediffusion holding 49%. Thames Television was given the new weekday London franchise, with ABC's existing franchises awarded to other companies.

The last years

Rediffusion's television sale and rental operations continued to grow, particularly following the start of colour television broadcasts in 1967. The company also experimented with its local cable operations: a local community station in Bristol ("Bristol Channel") from 1973 to 1976, and an optical fibre system in Hastings in 1976.

The Rediffusion brand was also a name in aircraft simulation in both the UK and the US. Redifon, established in 1948, had become a manufacturer of flight simulators and in 1981 BET changed Redifon's name to Rediffusion Simulation to capitalise on the name. The company was sold in 1988 to Hughes Aircraft, who kept the Rediffusion name until they sold the company in 1994.

Redifon and later Rediffusion computers were also part of the group and were based in Kelvin Way, Crawley, West Sussex. It initially started in the production of analogue computers to control flight simulators, then in later days produced ranges of mini ("R range") and microcomputers ("teleputers") specialising in data capture and videotex systems. During the late 1980s, there was a management buyout and the company changed its name to "ROCC Computers" (Rediffusion's Old Computer Company).

In the 1980s, Rediffusion's cable operations were left behind by the new generation of cable TV networks. BET (from 1983 the sole owners of Rediffusion) began divesting. Rediffusion sold off its overseas interests, and at the end of the 1980s the company was broken up, The rentals business went to Granada, and the cable network systems were sold to the Maxwell group.

See also

* Associated Rediffusion
* Rediffusion Television (Hong Kong)

References

* [http://rediffusion.info A history of Rediffusion by Gerald K Clode]
* [http://www.transdiffusion.org/tmc/tvh/history/history.php A short history of Rediffusion by Russ J Graham]
* [http://www.petford.net/kaleidoscope/itv-history.html Shuffling the pack by Simon Coward (1993-94)]