BSkyB Signs Deal With Microsoft To Provide VoD

BSkyB and Microsoft have announced plans to forge a deal, allowing the broadcaster to launch a video-on-demand (VoD) service for computers and furthering its reach into the broadband marketplace.

The partnership will give BSkyB subscribers who own PC’s with Microsoft’s Media Centre software the ability access VoD through Sky’s new Sky By Broadband Service, with service will be available to BSkyB’s premium movies and sports subscribers.

Commenting on the scheme, Bill Gates, chairman of Microsoft said: “We’re working with BSkyB and they’ll be setting up through our alliance a video-on-demand capability. They have got over eight million subscribers in the UK who will be able to do those downloads.”

Last year, BSkyB has an agreement to purchase internet service provider EasyNet in a deal worth £211 million, giving the company a slice of the UK’s rapidly growing broadband market (see Sky Nets ISP For Triple Play Services).

The deal will see BSkyB pay 175p per share in cash for each share in EasyNet, a price roughly 38% up on their value at market close yesterday.

BSkyB is understood to have earmarked around £100-200 million for the development of a high speed broadband infrastructure, extending EasyNet’s reach to compete with other service providers, and cable firms which will soon reach over 50% of Britain’s homes (see BSkyB Expected To Take-Over Easynet Group).

BskyB: 0207 705 3000 www.sky.com

Microsoft: 0870 60 10 100 www.microsoft.com/uk