BT May Be Setting The Bar Too High

So says Ovum, on BT’s supposed TV-over-IP offering. It says: “Although BT is unlikely to make much money out of it for a few years, we applaud BT’s decision to use its brodband networks to offer customers TV content….But we are less convinced about BT’s intention to offer, in addition, VOD services. VOD is not needed to match the triple players’
packages: so unlike broadcast TV, there is no business case for offering VOD on customer-retention grounds. And the positive (ie, non-defensive) business case is much harder to prove for VOD than it is for broadcast TV. Hopefully, BT’s investments in the VOD elements of its package are commensurate with the speculative, toe-dipping approach that we believe incumbents should be taking with VOD at present.”

Comments have been disabled for this post