BT Plans To Take On BSkyB With Broadband TV Service
BT Group is preparing to take on satellite broadcasting giant BSkyB with plans to launch a pay-per-view television service over its broadband network.
The project, which is being led by Pierre Danon, chief executive of BT Retail, is part a wider-initiative to drive the uptake of broadband internet. It would mark the telecom’s company’s first major foray into the highly competitive broadcasting arena.
BT is understood to have approached ITV and the BBC about providing content for the project, which is provisionally called ‘Sky Plus Plus’ – a reference to BSkyB’s personal video recorder, which enables subscribers to create their own viewing schedules and skip through the commercial breaks.
The telecoms company originally wanted to host a much larger archive of up to three months of programmes, which it would transmit to customers for viewing via its existing broadband network. Users would be required to buy a digital terrestrial television box with a broadband modem and pay an extra £30 per month for broadband access.
However, this plan has been delayed on the grounds that it would be too complicated for consumers. BT is reportedly undecided whether customers will have to have a PC, or whether they will be able to watch programmes transmitted via broadband on their television sets.
Watching television via broadband would provide significant benefits for advertisers and broadcasters as it allows much greater interactivity with the viewer. Compared with digital satellite or terrestrial television, it is much easier for for broadband viewers to send information, whether casting a vote or buying products shown on television.
This is key to increasing broadcasters’ revenues as they move away from a subscription only model. The latest figures from the BBC show that Freeview is now available in an estimated 4 million homes across the UK, more than half the total number of Sky subscribers.
Sky recently announced plans to launch its own free-to-air digital satellite offering, marking the satellite broadcaster’s first move away from its established pay-TV business model. The Freesat service will launch later this year with around 200 channels (see BSkyB To Launch Free-To-Air Satellite Package).
BT: 0207 469 2337 www.btplc.com
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