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Originally Posted by OLD BOY
How so?
I believe that owning Channel 5 could establish their credibility as a broadcaster with the general public and encourage potential customers over to BT Vision, where there could be an enhanced line-up of BT channels to increase interest in their TV service.
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BT has established its credentials for sports broadcasting, why does it need to invest in other general channels? At this stage it's trying to sell broadband, TV is secondary.
Quote:
Originally Posted by OLD BOY
Sky has had a presence on Freeview with Pick TV (previously Sky 3) for a number of years, and they use this not only to bring in additional advertising revenue, but also to showcase their pay channels. BT taking over Channel 5 would be much more prominent and it would be a good lead-in to a later campaign to attract viewers over to them instead of Sky.
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Channel 5 is a highly-regulated PSB service. Even if BT had the content, which it doesn't, it couldn't just use Channel 5 as a Pick TV type service. And buying Channel 5 doesn't bring with it much content. BT's John Petter stated "The lack of attractive programming formats does not just count us out as a suitor in the short term, it counts us out for any term".
Quote:
Originally Posted by OLD BOY
This does assume, of course, that BT intends to extend the range of its linear channels, which could include a bouquet of channels with BT Sport as part of that package. This in turn would increase interest in the overall BT offer of a competitive package including TV, broadband, mobile phones and landlines.
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OK, but I can't see any evidence that BT wants to go down this route for the time being.
Quote:
Originally Posted by OLD BOY
And that is where it is relevant. BT currently offers all four, but the TV side of it is weak compared with Sky and Virgin. Increasing the number of linear channels, with some in BT's own name, is bound to attract more people over to the service. Don't you think? And attracting customers to broadband is what their business objectives are all about.
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If BT gave everyone a gold bar with BT TV then they would attract more people to the service. I don't think that's financially sensible nor is acquiring a content-light PSB. However, it may be sensible for BT to develop its own channels in the future but I can't see the numbers stacking up at the moment. Far better for it to continue adding third party channels which don't require heavy investment.