Football fans will need to pay at least an extra £5 ($7.69) a month to watch the Champions League after BT "unveiled the pricing of its first move into the traditional pay-television market, as it challenges Sky's hold on the wallets of the sport's fans," according to Daniel Thomas of the FINANCIAL TIMES. The full package of BT sports channels -- "which will include a new European channel and an ultra-definition channel -- will cost £5 a month for BT broadband customers." However, the company "also revealed that its channels will be free for BT customers," who pay £5 or £10 ($15.38) a month. BT Head of TV & Sports Delia Bushell said that the launch of the new channels was as big a moment for BT as when it "first launched its sports TV service three years ago." She said, "It adds up to a major new chapter for BT Sport." The company will charge its broadband customers to watch European football matches, which were previously shown on Sky and ITV (FT, 6/9). REUTERS' Kate Holton reported with 7.7 million broadband customers and 1.14 million TV customers, BT is "betting it can persuade more subscribers to upgrade to also take a TV service, where customer loyalty and customer bills tend to be higher." The offer "may also help to persuade some Sky customers," and those on other platforms such as Virgin Media and TalkTalk, to "move over to BT for the full suite of telephony, fibre broadband and TV." RBC Capital Markets analyst Michael Bishop said, "We view the launch as positive for BT with aggressive pricing aimed to gain subscriber momentum. We see this as incrementally negative for Sky." BT Consumer CEO John Petter said, "BT Sport is delivering exactly the kind of growth that we anticipated" (REUTERS, 6/9). BLOOMBERG's Amy Thomson reported "in addition to recovering some of the money it's spent building up its
portfolio" of football, rugby, ultimate fighting and other rights, BT is
"raising the profile of the channels and stepping up its rivalry with Sky." Petter said, "The arrival of BT Sport hasn't just shaken things up a bit, we have grown and re-energized. That competition has been good for everyone, but most of all it has been good for sports fans." Macquarie Research analyst Guy Peddy said, "BT Sport has created a big product in its own right. BT TV is still languishing." While the new channels were "helpful for earnings," he said that "it all comes down to the volume of people that sign up." Peddy: "It's a volume thing rather than a pricing thing" (BLOOMBERG, 6/9).
LINEUP UNVEILED: The London TELEGRAPH reported BT Sport has unveiled its "new-look line-up for next season's Champions League -- which includes former Liverpool captain Steven Gerrard." Gerrard, who has joined Major League Soccer side LA Galaxy, is joined by former ManU defender Rio Ferdinand as a leading analyst. Former England Manager Glenn Hoddle, ex-West Ham and Tottenham Manager
Harry Redknapp and retired referee Howard Webb "will also form part of
the new-look line-up" (TELEGRAPH, 6/9).
