You also have to remember now that NDS isn't a Murdoch owned organisation anymore so even Sky have to pay, yes, pay another party (Cisco) for NDS Encryption. Challenge was never FTV as under Virgin it was a pay channel on Sky, presumably the encryption contract between Virgin and NDS has now expired, obviously it's now Sky and NDS for Challenge as Sky bought the Virgin channels. As for Pick TV, that will be in a form of contract with NDS and Sky will have to pay them for encryption on these channels. It may be that Sky deem them so low quality that the encryption costs on satellite aren't worth it considering they are free on DTT.
This could be one big mistake but I'd have thought they'd had spotted it by now and put them FTV or pay again. Someone commented that they were transponder moves, I'm not aware these were moved from one transponder to another today, just have gone FTA. Can anyone confirm if the encryption flag is still set?