Video services

BT's Visionary Strategy

7:45 AM -- In an effort to boost uptake of its hybrid IPTV service, called Vision, BT Group plc (NYSE: BT; London: BTA) is offering a wholesaled Sky Sports package at a highly competitive price, issuing an aggressive challenge to the creator of that very same sports content, Sky , one of its main rivals in the U.K.'s triple-play (voice, broadband, TV) market. (See BT Vision Gets Sky Sports.)

See this Guardian report for more details.

But in doing so, BT is taking on one of the world's toughest business figures in Rupert Murdoch. Is that wise? (Answers on the electronic postcard that is our message board, please…)

Sky immediately responded to BT's pricing strategy with a crafty maneuver, noted The Guardian (again).

BT Vision was launched in late 2006, but its subscriber number has stalled at less than half a million. (See BT Focuses Its IPTV 'Vision'.)

The carrier said earlier this year that, as part of its new three-year plan, it intended to invest more in Vision to re-ignite the TV and VoD service. (See BT Ramps FTTx Plans, Turns a Profit.)

— Ray Le Maistre, International Managing Editor, Light Reading

stelabokun 12/5/2012 | 4:30:50 PM
re: BT's Visionary Strategy

In Pyramid, we project a sluggish uptake of BT Vision with around 3% share of total TV accounts (so including freeview) by 2015. While BT’s prices seem lower at a first glance, their current offering is really not that appealing; first, BT Vision comes with a 24 month contract with BT (compared against 12 months of the Sky’s triple-play package). Also, Sky has an option of HD Sky Sports 1 and 2, while BT doesn’t. Finally, Sky offers a free Sky+HD box for its new 3-play customers, while BT charges around 90 Pounds for their box. 

shygye75 12/5/2012 | 4:30:46 PM
re: BT's Visionary Strategy

This points up the difficulty of trying to hang a competitive advantage on non-exclusive content, or services that others can offer. Ultimately, the only card you have to play is price. And if you try to load up your low-price offer with terms and conditions and not-so-hidden charges, customers will notice that and act accordingly.

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