[andygrif]

I'd agree with you, I also think the Sky HD box is overpriced too. But then most technology when it first comes out is more expensive, the Sky+ is a good example of that too.

I would think that this would have something to do with potential sub figures - broadcasting HD via satellite is an expensive thing to do, the making, storage and licensing of HD is also more expensive and at present there is a limited customer base to tap into, although of course this is growing pretty rapidly too.

As the technology becomes more mainstream, more HD channels will appear on-air and you start to hit a critical mass when it becomes cheaper.

Virgin have, commendably in my opinion, taken the lower cost option for the box, although it is of course lacking much of the HD content that Sky is broadcasting. Also, they're charging a high figure for swapping out your old box in favour of a new one, £75.

Cable, of course, has the big advantage of being able to deliver lots of HD channels without having to buy additional bandwidth, whereas Sky need to buy expensive satellite capacity for HD.

This will be an interesting battle-ground in the medium term - but not really much to do with the current skirmishes.