BT has stolen some of Virgin Media's high-speed
broadband thunder with an announcement today that it is teaming up
with television broadcasters BBC and ITV to offer video-on-demand
services over broadband.
Video-on-demand requires very high speed downloads to appeal to
users. Virgin Media will launch its
50mbps broadband service on Monday, which will offer this
capability. It has also been in talks with content providers for
them to use this network to distribute their content.
BT, BBC and ITV hope the deal will lead to a new generation of
subscription-free devices to carry free to air channels and
on-demand TV services such as iPlayer and ITV Player. It expects to
offer high-speed downloads of films, shows and other interactive
content from other providers in standard and high definition.
The partners will push for an open, standards-based environment
for broadband-based TV receivers that they hope internet service
providers, public service broadcasters and device developers will
back.
A Virgin Media spokesperson said it was not clear how the BBC
proposals would develop. "It is these types of converged services
which play to the strengths of having a fast broadband connection.
The consumption of online content is growing at a rapid rate, and
the availability of any mass-market service will help drive the
demand for ultrafast 50mbps broadband."
Virgin Media customers are likely to pay for their high-speed
services, but the BT/BBC/ITV offer is aimed at expanding their free
to view services. These include watch-again and archival
material.
A BT spokesman said it was too early to give details of who
would take part in talks on standards, or what standards and
connection speeds might come out of them.
He denied that the announcement was aimed at spoiling Virgin
Media's launch, saying the timing was set by the BBC Trust's
response to an Ofcom enquiry.
He said he expected Ofcom to take note of the association. Ofcom
is investigating the best way to support the introduction of
high-speed broadband networks.
Several market research reports earlier this year suggested
that consumer demand for high-definition video was the required
foundation for a national broadband service capable of speeds
faster than at least 2mbps.
The trio's plans are subject to BBC Trust approval and public
consultation. The BT spokesman said he was not at liberty to
disclose the launch date.
For more see
Private sector should drive demand for high-speed broadband