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| BT offers free Premier League football in BSkyB battle | BT offers free Premier League football in BSkyB battle |
| (about 4 hours later) | |
| BT is to offer free Premier League football coverage to its broadband customers, the telecoms company says. | BT is to offer free Premier League football coverage to its broadband customers, the telecoms company says. |
| The announcement is a signal of BT's intent to challenge BSkyB's dominance of the UK's sports pay-TV market. | The announcement is a signal of BT's intent to challenge BSkyB's dominance of the UK's sports pay-TV market. |
| BT won a three-year deal to show 38 Premier League games a season, beginning this year. | 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, compared with Sky's 10 million subscribers. | BT has 6.3 million broadband customers, but just 750,000 pay-TV customers, compared with Sky's 10 million subscribers. |
| BSkyB's shares closed more than 6% lower in London, 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. | 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. | 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' | 'Fans the winners' |
| Broadband packages on BT will cost from £10 a month. | 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. | 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. | 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." |
| 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 about 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 an offer of 12 months' subscription for the price of nine, and a free installation 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%. | 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%. |
| Analysts say the entry into the market by BT represents a serious challenge, despite Sky's success in fighting off previous competition from the likes of ITV Digital, Setanta and ESPN. | Analysts say the entry into the market by BT represents a serious challenge, despite Sky's success in fighting off previous competition from the likes of ITV Digital, Setanta and ESPN. |
| "Compared with the others BT is in a much stronger position because it has a massive number of customer relations already," said Toby Syfret, a television market analyst at Enders Analysis. | "Compared with the others BT is in a much stronger position because it has a massive number of customer relations already," said Toby Syfret, a television market analyst at Enders Analysis. |
| "This is a major player matching the scale of Sky coming in - we haven't had that before." | "This is a major player matching the scale of Sky coming in - we haven't had that before." |
| But he also warned that BT would be limited in terms of the matches it has available. | But he also warned that BT would be limited in terms of the matches it has available. |
| The majority of BT's highest profile games are scheduled for Saturday lunchtimes, while Sky's games are scheduled for Sunday afternoons, when audiences are significantly higher. | The majority of BT's highest profile games are scheduled for Saturday lunchtimes, while Sky's games are scheduled for Sunday afternoons, when audiences are significantly higher. |