Changing Relationships: BSkyB, BT and IPTV

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Satellite cable provider BSkyB’s recent move to TV over broadband in the U.K. after completing tests of the system should not be viewed as a defensive move by the U.K. giant, as analysts believe not even BT will squawk much about the new service. According to one who spoke with sister publication Inside Digital Television, “Sky probably only has three million out of its eight million subs in cable areas. I don’t think BT is inclined to take on Sky. A Sky customer is typically a BT customer. It strikes me as a natural evolution.”

With BSkyB entering into this space, the dynamics of the U.K. marketplace could change, along with the potential relationship between BT and BSkyB. Paul Erickson, a media analyst at IMS Research, says, “In regard to BSkyB offering video on demand (VoD) via a BT DSL connection, remember that BT has its own IPTV plans. Will they help a competitor in the video space with broadband video-on-demand (VoD) capability forever, once their IPTV deployment (Microsoft-based, not likely due until late 2006) is up and running? The answer to that question is unknown.”

While not commenting directly on BSkyB’s progress, Andrew Burke, CEO of BT Entertainment, did say, “BT is delighted that broadband is moving in to the ‘mainstream’ of entertainment delivery to homes worldwide. We are seeing many, many initiatives that are using the power of broadband to deliver point-to-point, on-demand, time-shifted content alongside the proved power of broadcast solutions. This ‘hybrid’ approach certainly seems the optimum path for telcos and broadcasters alike. The ‘always-on’ nature of a broadband connection will also revolutionize interactive TV, and we are sure that this new opportunity is only just beginning.”

Source: Telecom web

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