BT takes on the media giants with its own TV package

Published on Tuesday 5 December 2006 01:28

BT YESTERDAY unveiled a £100 million foray into the pay TV market with a set top box that bundles more than 40 digital channels with films and television shows on demand together with the ability to record 80 hours of viewing on to a hard drive.

The service, BT Vision, aims to undercut rivals Sky and NTL by offering its set top box free, with no monthly subscription.

Anyone signing up to the new platform will have to be a BT broadband customer to receive it.

BT has lined up several high-profile partners to hook in subscribers for the new box. Setanta Sports is providing a channel which will show 60 live Scottish Premier League games and 46 live FA matches while Warner Brothers has licensed both new and classic feature films plus TV dramas like ER.

The new set top device - called a V Box - contains the same technology that exists in Freeview boxes allowing users to watch digital TV programmes through a conventional TV aerial.

Its other key features are a video recorder plus the ability to watch programmes delivered over broadband whenever the viewer wants, a system called IPTV.

Customers will need to commit to one of three BT broadband tariffs costing between 17.99 and 26.99. There are also initial set-up and connection charges totalling 90.

James Healey, a senior media analyst at Ernst & Young, said: "BT is entering the pay TV market today as an aggressive price competitor, heavily targeting the home video market."