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BT and Microsoft Bring BT Vision to the XBox| Jan 10, 2008 | Consumer Broadband Service - Europe | Competitive Intelligence Report
Current Perspective: Positive Event SummaryOn January 6th Microsoft and BT announced they are bringing together the next-generation TV service BT Vision with Microsoft’s Xbox 360 games and entertainment system. All BT broadband customers will have the unique opportunity to receive the best in high-definition gaming, television and movies through an Xbox 360 console, in a powerful, all-in-one entertainment experience. Analytical Summary• Current Perspective: Positive on Microsoft’s announcement that it has selected BT as the first IPTV provider to deliver a combined Mediaroom and XBox 360 IPTV offering. BT has a ready-made market of XBox owners to sell to, and Microsoft gets a case reference for its integrated Mediaroom solution that includes a leading telecoms incumbent. Recommended Competitor Actions• Sky should aggressively market its Sky Plus service, as well as its DTV-by-satellite service as a competitor to BT Vision. The Sky service is impressive, and Sky has plenty of customers to upsell to. Sky Plus should also emphasize its VoD service capabilities and point to BT Vision as just another cable TV competitor. • Virgin Media should investigate the market for a Sony PS3 STB tied to an IPTV media platform, having dropped IPTV in November last year. Alternatively the growing strength of Apple in both home entertainment and mobile video communication devices may offer a strong brand alternative to BT’s Microsoft alliance. • Both Sky and Virgin should offer subsidized or free games consoles as a sales incentive. Carphone Warehouse has done very well for itself by offering ‘free’ XBox 360 and PS 3 consoles with premium mobile phone tariffs, and a similar campaign from pay TV broadcasters could negate this deal effectively – as long as the broadcasters have deep enough pockets. • Tiscali should leverage its customer base more aggressively. Its IPTV service is impressive, but available in the first instance only to cable customers in London. Tiscali has worked hard to offer the service to its DSL subscribers outside London and has succeeded, but it needs to sing the praises of its TV offering more loudly. • Sony and Nintendo should provide TV expansion packs for their consoles. Adding PVR functionality to, say, the Wii, with the option of program recommendation through a user’s Wii network, would be an attractive function. Sony’s PS3 platform is ripe for integration with its living room PC series. Recommended Competitor Actions• Customers should wait to find out the scope of BT’s XBox offering, and weigh up the value of the content BT provides – and its availability compared to more traditional cable and satellite services. With the existing uncertainty regarding HD formats, customers should not buy the Xbox just for that – it may be walking down an evolutionary cul-de-sac. • Customers should look for aggressive – and attractive – spoiler offers and (almost) free STBs from rival companies. There are bound to be attractive deals on offer to tempt consumers away from BT Vision. • Consumers should be wary of bundled deals that tie them into one supplier for multiple products; cost benefits need to be high to justify long term contracts. Since the Xbox 360 is an HD DVD compliant device, consumers who want access to Blu-Ray HD content should not choose BT Vision at this time. CLIENTS ONLY Current PerspectiveCompetitive Positives and ConcernsRecommended Vendor Actions| Client access - Full report in Consumer Broadband Services - Europe | More information |
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