The BBC has won back the rights to screen the two most prestigious events in the film calendar, the Oscars and the Baftas, in a double blow for the satellite broadcaster Sky.
Sky pulled out of the bidding for the Oscars, the hottest date in the showbusiness year, because of the media recession.
It is understood to have lost the Bafta film awards because the British Academy of Film and Television Arts was concerned about the low ratings on satellite TV. The event could draw millions of viewers on BBC1.
Sky has broadcast the Oscars since 1999 when it snatched the event from the BBC in a deal worth about $1m (£700,000) a year. The BBC is understood to have paid £500,000 a year for the new contract.
Sky screened the last two Bafta film awards, and was due to show next February's event until the British Academy went to the BBC instead.
The BBC is expected to confirm the deals today. When it lost the Oscars to Sky, it dismissed the story by saying the ceremony was a "pin prick in our schedules". Today, the corporation is likely to be more upbeat.
Jonathan Ross will anchor the BBC's coverage from Los Angeles: the ceremony will be screened live overnight on BBC2, with a highlights package the next day on BBC1. A range of blockbuster movies, from Titanic to Ben Hur, will be screened around the event.
The loss of the Oscars is a blow for Sky, which bases its reputation on being the home of big films. But a Sky source said the media recession meant it was unable to mount a competitive bid this time, and had to walk away. "Large sums of money were involved and we decided it was something that didn't fit with what we were doing. Money is always a factor, but it wasn't the only factor. It's not to say that we would not be interested in bidding for this sort of event in the future."
Bafta approached the BBC after its deal with Sky collapsed two years into a three year run. Sky sources said the parting was a result of a disagreement over the amount of money to be spent on next year's event. It disputed the BBC's claim that the Baftas had disappeared from the limelight after transferring to satellite TV.
A Sky source said: "We had a three year deal with Bafta, and the final event was due to be broadcast on Sky One in February 2002.
"But during our discussions with Bafta this year through the autumn, we were unable to agree on the extent of Sky's financial commitment to the project. We agreed to walk away and they were free to take it to another broadcaster."
The source said that £750,000 - the combined costs of paying Bafta and making the programme - could now be invested in original production. "Both parties walked away with no hard feelings."
The news came as the office of fair trading announced an inquiry into Sky's business practices. If found guilty of unfair competition, Sky could be fined more than £2m.
