Thursday, November 11, 2010

BT Doubles Up TV Efforts

It's double or quits for BT Vision as it inches its subscription base higher, now claiming nearly half a million subscribers. That's still an all in acquisition cost of over £1,000 per subscriber from the figures I've seen and being told, so this is a massively loss making part of the business.

However, the company's commitment to the TV service can be seen from its announcement of the addition of iPlayer content and 3D content to the platform.

But with fewer than 10% of subscribers adopting the Sky Sports package, average revenue per user is likely to remain low, yet again showing how difficult it is to compete in the UK TV market.

So, how could they make a difference ?

1) Buy sports rights - they cannot compete on football, but they could look to buy more niche rights such as live rugby

2) Provide a 'tv everywhere' product - cater for the iPad and tablet generation and come up with tailored solutions

3) Adopt an open platform approach by enabling all web video content

4) Go after niche audiences and provide niche services to cater for them, e.g expat channels

5) Build niche marketplaces, e.g. in business television, pub TV services

6) Make more of a virtue of the Film Club

7) Offer improved broadband quality of service to TV customers

8) Add more social aspects to their service, e.g. by doing a deal with Facebook (although this may be difficult due to their technical platform)

Instead, they seem to be trying to take on BSkyB head on, and that's not a game they're going to win.