BSkyB in Dawn raid on Channel 5

In the UK, Channel 5 boss Dawn Airey has been poached to head up BSkyB's Sky Networks, in a dramatic turn of events that have destroyed ITV's plans to make her its own chief executive.

Until the news broke today ITV had been publicly wooing Airey to join the network to lead an ITV revival, but she has side-stepped what is perceived by many as the most challenging job in British television. ITV's biggest shareholders Carlton and Granada were relying upon Airey to join the Network Centre to replace former director of channels David Liddiment.

ITV is now said to be considering asking former Channel 4 chief executive Michael Grade to head the network and even USA Networks boss and former Channel 4 ceo Michael Jackson. Industry insiders said beleaguered ITV is in a state of {panic{ after Sky's announcement.

Following her defection to Isleworth, Airey's deputy Nick Milligan and Channel 5's programme director Kevin Lygo are both vying for her job. A senior Channel 5 executive told C21: {No one knows who will replace her. If you go into one office you hear it's Milligan, another office and it's Lygo, and another somebody from Europe. She hasn't told us what her reasons are but she's meeting with staff this week. It is not an acrimonious thing at all and she is certainly leaving the channel in solid shape.{

As managing director of Sky Networks, Airey's responsibilities will include all programming and channels other than Sky Sports, including the Sky1, Sky News and the digital Freeview channels, with an annual budget of around £500m. Sky Networks has not had anybody in the role since Rupert Murdoch's daughter Elisabeth left to set up her own company last year. Airey will report to Tony Ball, chief executive of BSkyB.

Ball said {She is first rate executive and we are pleased that she has chosen to work with us. Sky has an excellent suite of channels, and is securing wider and wider distribution for them every day. Her role will be to develop Sky's content offering as our channels become available to everybody in the years ahead.{

Having secured Airey's services, the rumour mill is again at work over Sky's intentions towards Channel 5. The satellite broadcaster, 40%-owned by Rupert Murdoch's News Corporation, looks likely to buy into the channel once UK media ownership laws have changed. Airey's access to Channel 5's German shareholder RTL will prove useful if such a move transpires.

Airey first hit the headlines in 1996, when she was poached by new start-up Channel 5 as director of programmes. She later ascended into the ceo office. Under her control Channel 5's share of audience has increased to 6.5%, from 5.7% a year ago.

Once famously summarised by Airey as {films, f***ing and football{, Channel 5 has recently been working hard on ridding itself of its reputation for tawdry television with arts and cultural commissions, high quality crime dramas from North America, even its own period dramas.