BT In Talks With Broadcasters Over Broadband TV
BT is reported to be in talks with some of the UK’s biggest broadcasters to provide customers with television on demand via a high-speed broadband connection, marking the telecom giant’s first steps into the lucrative pay-per-view market.
The company, which currently provides broadband connections to over 3 million customers, is understood to be consulting the BBC, BSkyB and ITV about broadcasting their content via an on demand network to users of its new digital television service.
The proposals would see BT operate a service very similar to that of current broadband television operator, HomeChoice, which gives customers a mix of live and on demand channels. HomeChoice recently secured the rights to broadcast Sky Movies, Sky Sports 1, 2, 3 and Xtra over its network, boosting customer choice and making the service a viable alternative to Sky’s proprietary satellite system (see Sky Boosts Audience Reach With HomeChoice Deal).
A report in today’s Financial Times suggests that a digital television offering from BT would consist of a Freeview set-top-box equipped to receive its broadband on demand content. The resulting product would capitalise on the growing success of Freeview, giving customers free channels through their aerial, while boosting its appeal with premier content from BT’s broadcast partners, available whenever the customer wants to watch.
The realm of television via broadband looks set to receive substantial investment over the next few months, with BSkyB understood to be gauging customer demand before dipping its toe into the murky waters, and internet provider Wanadoo preparing to launch a similar service through its recently unveiled Livebox home entertainment centre (see Wanadoo To Offer Customers TV Content On Demand).
Watching television via broadband would provide significant benefits for advertisers and broadcasters, allowing much greater interactivity with the viewer, in addition to unprecedented information on viewing habits and advertising delivery.
The fledgling medium could also provide valuable new revenue streams, as compared with digital satellite or terrestrial television, it is much easier for for broadband viewers to send information back to broadcasters, whether casting a vote or buying products shown on screen.
However, the roll out of such high-tech services is fraught with complexity. HomeChoice’s broadband network has been slow to grow outside its initial subscription base of London viewers, however, the company recently announced plans to extend its coverage, encompassing an additional 100,000 homes across the south-east and building upon the 1.25 million already within its catchment area (see HomeChoice Boosts Coverage To Customers Outside London).
BT: 0207 469 2337 www.btplc.com
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