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BT offers free Premier League football in BSkyB battle BT offers free Premier League football in BSkyB battle
(about 2 hours later)
BT is to offer free Premier League football coverage to its broadband customers, the telecoms company has announced. BT is to offer free Premier League football coverage to its broadband customers, the telecoms company says.
After winning a three-year deal to show 38 Premier League games a season, BT has signalled its intent to challenge BSkyB's dominance of sports pay-TV. The announcement is a signal of BT's intent to challenge BSkyB's dominance of the UK's sports pay-TV market.
BSkyB's shares fell nearly 6% as BT unveiled its plans, which includes a £10-a-month broadband package. BT won a three-year deal to show 38 Premier League games a season, beginning this year.
BT has 6.3 million broadband customers, but just 750,000 pay-TV customers. BT has 6.3 million broadband customers, but just 750,000 pay-TV customers, compared with Sky's 10 million subscribers.
The aggressive move is an attempt to establish itself as a major multi-platform provider, offering TV, internet and telephone in one package. BSkyB's shares fell nearly 6% after BT unveiled its plans.
BT's move is an attempt to establish itself as a major multi-platform provider, offering TV, internet and telephone in one package.
It will provide all of its 38 Premier League games free to broadband customers, including 18 "first pick" matches, on three channels: BT Sport 1, BT Sport 2 and ESPN.
'Fans the winners'
Broadband packages on BT will cost from £10 a month.
But customers who want to access the sports channels will also need to pay for a set top box, or pay an extra £5 per month for the basic television package.
That compares with Sky's offer of 116 Premier League matches, as part of a six-channel sports package that costs £42.50 per month for the first six months, and includes broadband internet.
BT Sport's channels will also show 69 live Aviva Premiership rugby matches per season, plus live football from leagues in Germany, France, Italy and Brazil.BT Sport's channels will also show 69 live Aviva Premiership rugby matches per season, plus live football from leagues in Germany, France, Italy and Brazil.
Chief executive Ian Livingston said: "UK sports fans have had a rough deal for too long. Many have been priced out of the market, but we will change this by giving away BT Sport for free with our broadband.Chief executive Ian Livingston said: "UK sports fans have had a rough deal for too long. Many have been priced out of the market, but we will change this by giving away BT Sport for free with our broadband.
"Sports fans are the winners today.""Sports fans are the winners today."
Broadband BSkyB dominates the pay-TV market with about 10 million customers, but lags behind BT with 4.3 million broadband customers.
BSkyB dominates the pay-TV market with around 10 million customers, but lags behind BT with 4.3 million broadband customers. BT Sport is also taking on BSkyB in pubs and clubs, with an offer of 12 months' subscription for the price of nine, and a free installation offer lasting until 1 July.
BT Sport is also taking on BSkyB in pubs and clubs with a 12-months-for-nine subscription and free installation special offer lasting until 1 July. About half the premises taking up the offer will end up paying £135 a month, BT said, while packages for hotels and betting shops could undercut Sky by 75%.
Around half the premises taking up the offer will end up paying £135 a month, BT said, while packages for hotels and betting shops could undercut Sky by 75%.
Former BBC presenter Jake Humphrey will front BT Sport's Premier League coverage, and Manchester United player Rio Ferdinand will provide opinion and analysis, along with several other sports stars.
BSkyB's share price was down 6% in early afternoon trading, with BT's stock 2.4% lower. Some investors have worried that a battle for customers between the companies could drive down margins and profits.