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The company claims its new virtual cable television service - dubbed FilmOn HDi - is "set to render ITV, BBC and Channel 4's online offerings increasingly irrelevant", with its web-based platform to deliver free live HD TV programming and video on demand content.

The website was founded by billionaire Alki David and, although unwilling to elaborate at this stage, a spokesperson told Shopper the site has got some "major broadcasters" on board for the project. The company has already announced it will be broadcasting MTV and CNN America programming on its non-HD TV service.

FilmOn claims the broadcast

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quality of programming will range from 480p, which is the broadcast quality of standard television programming in the US, and 1080i; the quality of HD service, such as Sky HD, in the UK.

The service can be transmitted over any broadband internet connections of 1Mbit/s or higher, in the form of a 3G phone, an internet-enabled set-top box or a PC.

According to FilmOn, programmes are transmitted via specialist encoding hardware and fed to the Network Operations Centre (NOC) through satellite or fibre optic lines. The NOC deploys a compression and distribution system that delivers programmes to the viewer with just one megabit. This allows for high resolution programming - regardless of screen size - to be transported by average copper-wired home broadband DSL and Cable lines, or wirelessly via a 3G connection.

FilmOn claims the service will launch programming worldwide in the new year, but a spokesperson told Shopper to have "something run out on Saturday". It will be launched with just a "handful" of channels, but FilmOn insists the service will expand to include the majority of national broadcasting channels and subscription channels including sport, films and adult content.