Long Time Coming – BT’s Vision
As technology blossoms at a frightening rate and media platforms meld into one another, BT’s vision for the future of television broadcasting trickles onto the market, barely visible to media professionals let alone the general unit buying public…
BT Vision, the telecommunications giant’s Internet Protocol TV service, crept onto the market at the beginning of this month (see BT Vision Trickles Onto Market Next Month), a silent but potentially dangerous competitor in the PVR and on-demand sector.
With the company’s funds, history and dominance behind it, BT could well sweep the board. However, the plethora of other players with equal or greater pulling power is clear, with analysts suggesting product marketing will be key.
Notably, BT Vision has slid into circulation without fanfare, leading to speculation around technological hitches and product confidence, as well as its potential for success.
Essentially, the system lies between Freeview and a subscription service such as Sky or NTL, available to BT Broadband subscribers for a set-top box and connection fee. The IPTV function enables users to access 40 Freeview channels, as well as a library of 500 on-demand films in the New Year, rising to 1,000 by the end of next year, for a small fee.
Other television programmes, sports and music videos are also available on-demand or through pay-per-view or monthly subscription packages, whilst Vision’s set-top box acts as a Personal Vision Recorder with 80 hours of programming, pause, rewind and fast-forward features.
As well as taking a large slice of the Premier League matches, BT Vision has signed an abundance of content deals with companies such as MTV, Paramount, Nickelodeon, Future Plus and Emap to name a few (see BT Vision Signs Further Content Partners). The company already has around three million broadband customers, all of which would be eligible for the Vision service.
However, analysts have warned that set up costs could put off consumers, particularly considering the low cost of Freeview boxes and DVRs, as well as the brand power of the likes of Sky+. Freeview is also set to introduce Freeview Playback in the New Year (see Freeview Playback To Be Widely Available By Next Summer), which also enables programmes to be recorded digitally, whilst Orange may also enter the market.
BT Vision is entering a crowded market, with its success dependent on how well the service is marketed. Screen Digest said if BT reached its target of attracting three million customers by 2010, it could cost the company £300 million, with ongoing costs also proving high. Analysts, however, have said that the biggest concern for the company could be the sheer number of competitors in the UK.
Whilst BT is one of the most established brands in the telco business, it’s credibility as a media or non-telco provider isn’t particularly recognised. Whilst Sky has worked tooth and nail to build itself as a widely accepted broadcast company, and as Freeview continues to boost its popularity – looking set to overtake Sky – whether communications giant BT will have success with its latest venture is yet to be seen, but for now the product’s future rests precariously in the balance.
BT: 0207 469 2337 www.btplc.com