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| Version 2 | Version 3 |
|---|---|
| BT signs live football match deal | BT signs live football match deal |
| (9 minutes later) | |
| UK phone company BT has announced a tie-up with Irish sports broadcaster Setanta that will allow it to broadcast live Premiership football matches. | UK phone company BT has announced a tie-up with Irish sports broadcaster Setanta that will allow it to broadcast live Premiership football matches. |
| The news comes as BT officially launches its new Vision television service, a move it hopes will turn it into a fully-blown multimedia company. | The news comes as BT officially launches its new Vision television service, a move it hopes will turn it into a fully-blown multimedia company. |
| Setanta has rights for 46 Premiership matches for the 2007/2008 season. | Setanta has rights for 46 Premiership matches for the 2007/2008 season. |
| BT's move will see its service compete against market leader BSkyB, which owns the rights to the other matches. | BT's move will see its service compete against market leader BSkyB, which owns the rights to the other matches. |
| "BT is entering the pay-TV market as an aggressive price competitor, heavily targeting the home-video market," said James Healey, a senior analyst at Ernst & Young. | |
| "With a 1,000-film library by next year and films costing £3 each at the most, it will strike fear into the hearts of high street video chains." | |
| In early afternoon trading, BT's shares had added 2.4% to 57.46 pence. | |
| Sporting base | Sporting base |
| Focusing on sports such as football, rugby and cricket has helped turn BSkyB into one of Europe's biggest satellite TV broadcasters and the dominant provider in the UK. | Focusing on sports such as football, rugby and cricket has helped turn BSkyB into one of Europe's biggest satellite TV broadcasters and the dominant provider in the UK. |
| According to BT, the tie-up with Setanta and an existing agreement to show nearly live football matches means that its service will give customers access to 75% of the 2007/2008 season's Premiership matches. | According to BT, the tie-up with Setanta and an existing agreement to show nearly live football matches means that its service will give customers access to 75% of the 2007/2008 season's Premiership matches. |
| BT said it will also show Scottish Premier League and Nationwide Conference games, as well as European matches and other sports such as golf. | BT said it will also show Scottish Premier League and Nationwide Conference games, as well as European matches and other sports such as golf. |
| The challenge remains, though: is BT trying to create a market that doesn't exist? James Healey, Ernst & Young Check BT's share price | |
| The company explained that it "will be offering Setanta's new sports channel, Setanta Sports, from next summer". | The company explained that it "will be offering Setanta's new sports channel, Setanta Sports, from next summer". |
| BT said that while it was entering a similar market, it would be looking to attract customers that did not want to pay a monthly subscription but wanted more services than were available through a simple Freeview box and package. | BT said that while it was entering a similar market, it would be looking to attract customers that did not want to pay a monthly subscription but wanted more services than were available through a simple Freeview box and package. |
| The service will function through a set-top box, which is linked to the user's aerial and broadband. Users will be able to access more than 40 Freeview television channels and a library of films, music videos and TV shows. | |
| BT said that about 50,000 customers had signed up for its Vision service, but that it would only have "thousands" up and running by the end of this year. | BT said that about 50,000 customers had signed up for its Vision service, but that it would only have "thousands" up and running by the end of this year. |
| It expected to have 200,000 customers using the Vision service by the end of 2007, and eventually said it planned to sign up millions. | It expected to have 200,000 customers using the Vision service by the end of 2007, and eventually said it planned to sign up millions. |
| Slow start | |
| Analysts questioned the size of BT's amibtions, but said that Vision may well prove popular with a significant range of consumers. | Analysts questioned the size of BT's amibtions, but said that Vision may well prove popular with a significant range of consumers. |
| BT is looking at ways of boosting the appeal of its broadband internet services to offset a decline in its more traditional fixed-line phone revenues. | BT is looking at ways of boosting the appeal of its broadband internet services to offset a decline in its more traditional fixed-line phone revenues. |
| Along with cable companies and other phone firms, BT is looking to offer consumers a one-stop solution that would allow them to get their entertainment, internet and phone calls all from the same provider. | Along with cable companies and other phone firms, BT is looking to offer consumers a one-stop solution that would allow them to get their entertainment, internet and phone calls all from the same provider. |
| "BT Vision should help BT sure up its market share of broadband customers," said Ernst & Young's Mr Healey. | |
| "It also enables BT to provide a solution for current Sky or NTL customers who don't want to pay a monthly subscription but want to occasionally watch premium content," he added. | |
| "The challenge remains, though: with 40 free channels on Freeview, are consumers who don't have satellite or cable TV today willing to pay for any TV content, or is BT trying to create a market that doesn't exist?" |