Web TV firm's £10m growth hopes

http://news.bbc.co.uk/go/rss/-/1/hi/wales/7436875.stm

Version 0 of 1.

A firm which has developed a way of delivering broadcast quality television over the web says it can expand after securing almost £10m investment.

Inuk Networks, based in Abercynon, south Wales, has received the funds from S4C and a venture capital firm chaired by hotelier Sir Terry Matthews.

Inuk serves thousands of students in halls of residence but wants to expand into the mass market.

It also wants to roll out the service to US and Irish Republic universities.

Currently, watching television over the internet on a broadband connection does not offer the same quality picture.

But Inuk, which employs over 40 people, said its Internet Protocol TV (IPTV) technology improved quality.

Inuk focuses mainly on the student market and its Freewire service is available in more than 100,000 student rooms in campus accommodation in the UK.

But when students move out to rented accommodation Inuk cannot follow them.

The quality is broadcast TV. If you put this up against a Sky service the quality will be comparative Marcus Liassides, Inuk Networks

Marcus Liassides, chief executive officer of Inuk, said it had made moves to rectify this issue and and the cash injection from S4C and Sir Terry's Wesley Clover firm would further help expand its reach.

"Early in 2007 we announced a nationwide deal with Cable and Wireless which will enable us to run a nationwide service through their network," he said.

"We are running final tests now. It will be the first national deployment of a live TV solution in the UK."

He said it hoped to start taking orders on this service in the near future.

In a competitive market occupied by the likes of Sky and Virgin, Mr Liassides said initially it would use the Cable and Wireless network to target the 3.2m student population.

"They can't get Sky because they need to have a 12-month contract. You also need a 12-month contract with Virgin. We are trying to make it more student friendly," he said.

Users will be able to watch the Freewire service on their PC, laptop or Apple Mac as well as through televisions with the help of a set-top box.

Small trials

"The quality is broadcast TV. If you put this up against a Sky service the quality will be comparative," said Mr Liassides.

The money will also help Inuk roll out its technology overseas.

It already has small trials running in the United States, Canada and the Irish Republic with universities that, it says, want to launch its services.

"I think with the investment from S4C and Wesley Clover it really puts us in an exciting position to exploit those opportunities," said Mr Liassides.

The investment by S4C has been made through its commercial subsidiary S4C Digital Media Ltd using commercial revenues only.

S4C chief executive Iona Jones said the investment represented a coming together of S4C's commercial ambitions and its understanding of the importance of new methods of delivering content to consumers..