BT seeks TV deals

net1

BT Group is said to be in advanced discussions with BSkyB, ITV and the BBC for the rights to offer consumers popular programmes over high-speed internet connections on a pay-per-view basis.

According to weekend media reports, the discussions are part of plans by BT to enter the pay-per-view TV market with the launch of a new BT-branded digital TV and internet service.

The telecommunications operator has been in discussions with a number of makers of Freeview receivers, including Netgem and SetPal, to develop set-top boxes that will connect high-speed broadband internet services to TV sets. BT wants to sell an enhanced Freeview box that would not only give users the full range of free digital channels but also an extensive library of films, dramas and other TV content on demand.

Trials of the system are due to start on a few hundred customers this week, and BT hopes to have a full commercial launch of the service next summer.

BT is in separate, but less advanced, discussions with BSkyB to combine its on-demand TV broadband technology with Sky's satellite broadcasting service.

BSkyB's latest Sky+ set-top box enables users to select the types of programmes that they would like to watch and have these automatically saved on a hard drive to be watched later at viewers' own convenience. Sky cannot offer a true video-on-demand service using satellite broadcasting but two years ago was awarded its own broadband service licence.

BSkyB is expected to gauge the impact of its soon-to-be-launched FreeSat service, which gives households free access to a limited range of Sky channels, before it decides whether to team up with BT to offer video-on-demand.