BSkyB Launches New Set Top Box
BSkyB today launched Sky+, its second generation set top box. The box, which is an integrated satellite receiver and personal video recording system (PVR), will go on sale from September and has a retail price of £300.
The system provides a range of extra features, allowing Sky customers to record one programme whilst watching another, pause live TV and record episodes of their favourite programmes automatically, without the need for video tapes.
The box has a 40 gigabyte hard drive, which allows an average of 20 hours worth of recording space, and records directly from the digital broadcast stream, meaning that all recordings will be the same quality as live viewing.
According to Sky, initial demand for the product has been strong and the company has received 60,000 pre-registrations for the service.
Speaking at the launch today Sky’s director of new product sales, Brian Sullivan, said; “Sky will not be subsidising the sale of the new box and while the retail price is £300 the wholesale price remains confidential. We do however expect to make a positive gross margin in the next few years.”
However, in addition to the upfront cost of the box, viewers will have to pay a monthly subscription of £10 as well as £50 for installation of the equipment. Non-sky customers will pay £100 for installation.
Sky defended the cost of the system which, according to Sullivan, is cheaper than the TiVo PVR, which costs £400 plus a monthly subscription charge.
Personal video recording systems, which offer viewers the option to fast forward through commercial breaks, have not been popular with advertisers. However, in the future, the Sky+ system, will offer a “telescoping option,” which will link viewers interested in a particular ads to extended commercial breaks.
Sky’s chief operating officer, Richard Freudenstein, said: “Sky+ will transform television. It offers the ultimate choice and control, giving viewers more power than ever before to choose what they want to watch, when they want to watch it.”
He also confirmed that Sky+ would compliment the existing offer of the free digibox and minidish and said: “Sky is investigating options for existing digital satellite viewers to purchase Sky+ but also retain their existing free receiving equipment.”
BSkyB: 020 7705 3000 www.sky.com
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