FYI
Remember my thoughts on AOL.
(this freeware Co. going to charge customers, reminds me of netzero.com the free internet access company. It really is 100% free and no strings attached.
AOL is on the warpath with this for sure, I knew I would see something like this from somewhere. Netzero being free and ATHM talking of making the cableline internet connection free will STOMP (AOL) NetZero's plans? It is working to well so far for Netzero.com!
All best!
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cbs.marketwatch.com
[external] MarketWatch Renegade: Digital TV/Internet conference in London - at CBS MarketWatch
BSkyB: the Bs stand for Bullish
By Emily Church, CBS MarketWatch
Last Update: 10:31 AM ET Apr 23, 1999 Media Report
NewsWatch
LONDON (CBS.MW) -- British Sky Broadcasting's chief executive, Mark Booth, was in bullish mood. At a Dresdner Kleinwort Benson Going Digital conference on digital television and interactive services in London, the BSkyB (BSY: news, msgs) chief claimed Friday that Sky television's digital service, launched last October, has had the fastest growing subscriber base of any digital platform worldwide. It's now got 350,000 subscribers and Booth says the company's target is to reach 1 million subscribers by October 1999.
As for the internet, Booth said BSkyB plans to find a way to gets its programs out there. "That space is important to us. We must be there, and we must be competitive," he said. Not surprisingly, Booth said he was very disappointed by the British government's recent move to block BSkyB $1 billion takeover of Manchester United, the world's richest soccer club. However, he said Sky is always open to acquisition opportunities. "I don't think you'll ever see Sky happy with its position," Booth said.
In contrast, Jeremy Thorpe, managing director of NTL Inc.'s digital services, said his company was rather more happy with its position. Thorpe played down the likelihood of NTL (NTLI: news, msgs) hitting the acquisition trail. "We've reached a scale we think is sustainable and are happy with," he said. But Thorpe did add that: "We would like to extend our broadband services."
Sticking to the consolidation theme, Adrian Chamberlain of Cable & Wireless Communications (CWZ: news, msgs) said consolidation in the U.K. cable television industry is inevitable. "We are following the same path as Telewest Communications (TWSTY: news, msgs) and are working closer and closer together," Chamberlain, the company's managing director of consumer markets, said. Cable & Wireless Communications is a subsidiary of Cable & Wireless PLC (CWP: news, msgs).
The biggest let down of the day was provided by Mark Danby, the general manager of Freeserve. Freeserve is a subscriber-free ISP, owned by Dixons Group PLC. Emerging from the back of the stage, Danby announced to a disappointed audience that he wouldn't be taking any questions, gave a brief run-down of freeserve, and then disappeared in a puff of smoke back where he came from. Danby said that "while we're in a state of war I'm unable to answer questions." He was referring to Dixons move to sue America Online (AOL: news, msgs). The British company is suing AOL over "slander and malicious falsehood." Dixons has accused service representatives from AOL's subsidiary CompuServe, of spreading rumors that Freeserve's free internet access is temporary and it will become fee-paying.
Danby did say, however, that Freeserve plans to step up customer loyalty programs in an effort to retain its 1.1 million subscribers in the U.K. The Freeserve manager also wouldn't comment on speculation that Dixons plans an IPO for its ISP. Analysts estimate an IPO of Freeserve would raise about $4 billion (2.5 billion pounds).
E-commerce services delivered to the consumer via digital TV may yet provide a backdoor challenge to the free ISP bandwagon in the U.K. British Interactive Broadcasting's (BiB) said it expects to begin a gradual roll out of its e-commerce services for digital TV. The service, pumped into living rooms via a set-top cable box, is called Open and will debut to a handful of customers in about two weeks, said CEO James Ackerman. A full launch is still slated for the fall. At that time, Ackerman expects U.K. subscribers to SkyDigital, the new service's content carrier, to have access to "12-15 retailers, three financial services and six to seven information services providers." BiB is a joint venture linking HSBC bank with a 20 percent stake; Matsushita, a Japanese electronics firm with 15 percent; and, part owner News Corp's (NWS: news, msgs) BSkyB and British Telecom (BTY: news, msgs) splitting the remainder. For the soft launch, HSBC provides banking services. E-mail and retail services also will be provided.
An older idea is regaining steam in London: Should folks who want digital TV services pay more for a license from the BBC? Alan Yentob, director of Television for the British Broadcasting Corp., didn't come down on either side of the debate on Friday. He didn't dismiss the idea either. The plan "is one of many" that are floating about. "Like digital, (the advent) of color TV was a challenge for the BBC," Yentob said. "We must make sure that the technology empowers and not devours." The BBC's Web site, www.bbc.co.uk, is the second most popular in Britain with 42 percent reach, according to Dresdner analyst Mike Hilton and Fletcher Research. Yahoo (YHOO: news, msgs) U.K. & Ireland is first with a 61-percent reach. The BBC Online site is seeing 80 million hits a month. "We hope to hit 100 million a month," Yentob said. Lycos (LCOS: news, msgs) has the third largest reach; Excite (XCIT: news, msgs) is fourth; Compaq's (CPQ: news, msgs) AltaVista is a close fifth and InfoSeek (SEEK: news, msgs) is sixth.
See Thursday's dispatches from NAB in Vegas
See Wednesday's dispatches from NAB in Vegas
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