By Tom Espiner, 20 October 2005 08:35
NEWS ITV has launched a broadband TV trial offering local TV to people in the south coast region, the company announced on Monday.
The ITV Local trial is aimed at viewers in the Brighton and Hastings area, and includes local news and weather, local films and music, an entertainment guide, and classified advertising.
The three-month trial will test consumer demand and, if successful, the company plans to expand the service to other parts of the UK.
This is the first commercial trial of broadband by a major UK television company. Lindsay Charlton, managing director of ITV Meridian, said: "We've beaten BT and the BBC [to trial broadband], and have something that'll knock their socks off. TV has come of age with ITV Local." The BBC is trialling a limited broadband service, called iMP, currently.
The outcome of the trial could affect ITV strategy for a possible national ITV broadband channel. Charlton said: "The launch of ITV Local is part of the emerging broadband strategy within ITV."
Viewers will be able to provide and upload their own 'Citizen's TV' reports, and a partnership deal with Screen South will allow filmmakers to upload their own films to the channel, ITV said in a statement. Charlton added: "The heart of ITV Local is public participation."
The channel will be "unashamedly commercial", according to Charlton. Revenue will be raised through a variety of different advertising means, including spot advertising, pay-per-view for live services and downloads, and possible subscription services for some sports.
Local sports teams will also be able to upload their matches as well - the Brighton Bears basketball team has already agreed with ITV Local to make its games available, according to Charlton.
As the audience declines in more traditional media, broadcasters will be competing for the same slice of advertising revenue, said Charlton. "ITV1 can no longer guarantee an income stream, especially with other people in the digital marketplace," she said.
ITV Local will compete for local advertising revenue, in a market worth £2bn, through classified and other local advertising, Charlton said.
The service has already proven popular, with more than 35,000 users in the first 24 hours, according to Charlton.
There are more than eight million home broadband connections in the UK and according to Ofcom, and 250,000 new households are signing up for broadband each month.
Tom Espiner writes for ZDNet UK
Comments
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1. Jonathan Guthrie
Dear Sir,
The news that ITV is trialling a new broadband-TV service marks a significant turning point in the way consumers will choose to view programming forever.
Whilst consumers will enjoy greater a choice in programming than ever before and the ability to view what they want, when they want, on the device they choose – if you scratch below the surface there is a plethora of issues which need to be addressed in order to successfully deliver IPTV to the masses.
For instance, as more broadcasters, telcos and ISPs jump on the broadband-TV bandwagon there’s a risk that consumers could be overwhelmed with too many choices and easily lured away by more attractive offers or prices.
There’s no doubt that content providers will have to work much harder to keep existing customers loyal and attract new customers as ‘broadband-TV’ becomes more competitive.
To stay ahead of the game it will be critical for content providers to consummate customer relationships and seamlessly integrate new platforms and pay-TV services to ensure that customers don’t stray and to gain maximum profit per viewer.
Jumping into the broadband-TV market head first without a long-term strategy for delivering content across multiple platforms and a clear revenue model is risky business.
The winners in the broadband-TV market will be the providers which offer superior customer service which is highly personalised at every stage of the customer lifecycle.
Yours sincerely,
Jonathan Guthrie
CEO, MGt