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50,000 register for BT Vision
Telco BT has claimed that 50,000 of its three million UK broadband customers have already signed up for its BT Vision service, which launched today, and will be connected over the coming months.
A year from now, BT aims to have more than 100,000 customers connected to its hybrid digital terrestrial television/IPTV service and is targeting two-three million in "the medium term."
 The company is taking a cautious approach in the early stages of the roll-out, and is delaying an advertising push until next year. It is keen to avoid the kind of customer backlash suffered by rival telco Carphone Warehouse when it was swamped by demand for its free broadband service.
BT Vision, which comprises an 80-hour personal video recorder, 40 Freeview TV channels, a one-week TV replay service and 1,000 hours of on-demand movies, music, TV and sport, is being offered free apart from a £90 (US$178) installation fee. Customers are being offered subscription packages but can also pay for content 'a la carte,' with prices ranging from 29p to £2.99.
The most eye-catching part of the package is live Premiership football, pitching BT into direct competition with Sky. BT has struck a deal with Setanta Sports, which has the rights to screen 46 live Premiership games and 242 'near live' matches for the 2007-2010 seasons. The ability to watch live matches on a pay per view basis and without the need for a fixed subscription – which with Sky ranges from £34 to £43.50 per month – is likely to be a major selling point for BT and could re-draw the battle lines in the UK pay-TV market.
BT has also struck a deal with Warner Bros to supply downloads to own and rent TV and movie content, and next year, plans to make movies available at the same time as their DVD release, as opposed to waiting for the later pay-per view window.
BT says it is investing £100m in supporting BT Vision over the next financial year and hopes it will be profitable within three or four years.
Jim Curtis
4 Dec 2006
© C21 Media 2006
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