BT Group PLC (BT) Monday struck a deal with music company Sony BMG, the joint venture between Sony Corp. (SNE) and Bertelsmann AG, to add Sony BMG music videos to the content portfolio of BT Vision, the Internet TV service BT is to launch in the autumn.
The companies declined to disclose financial details of the deal.
BT broadband internet customers that use BT Vision will be able to access music from Sony BMG artists, which include Foo Fighters, Justin Timberlake and Bob Dylan, via Internet TV and to their MP3 digital music players.
BT, the U.K.'s largest fixed line telecoms operator, said the deal builds on music TV deals it already has in place with companies including Warner Music ( WMG) and Emap PLC (EMA.LN). Emap owns music brands including Q, Kerrang!, Mojo and Smash Hits.
Dan Marks, chief executive of BT Television Services, said in a statement: " This is an important deal for BT Vision and allows us to offer our customers access to a broad range of music videos many of which will be exclusive to BT Vision for a period of time from their release."
But Ian Maude, analyst at Enders Analysis, says although it's a positive move, he doubts the Sony BMG deal will drive strong customer demand for the BT Vision service.
"The two main things that drive demand for digital and satellite TV are movies and catch-up TV," said Maude, who added that BT has yet to announce a catch-up TV service.
"It's a good move in that music video is part of the broader offering that BT needs to have to appeal, but I don't think it will have much impact on demand for the service," said Maude. "Music videos can be watched on sites like Yahoo Music completely free of charge."
Morten Singleton, an analyst with WestLB said: "It's still too early to gauge whether BT Vision will be a success, but they have got the right idea because they are focusing on video on demand, which people want, rather than on subscription services with hefty fees where users only take a fraction of the content".
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The companies declined to disclose financial details of the deal.
BT broadband internet customers that use BT Vision will be able to access music from Sony BMG artists, which include Foo Fighters, Justin Timberlake and Bob Dylan, via Internet TV and to their MP3 digital music players.
BT, the U.K.'s largest fixed line telecoms operator, said the deal builds on music TV deals it already has in place with companies including Warner Music ( WMG) and Emap PLC (EMA.LN). Emap owns music brands including Q, Kerrang!, Mojo and Smash Hits.
Dan Marks, chief executive of BT Television Services, said in a statement: " This is an important deal for BT Vision and allows us to offer our customers access to a broad range of music videos many of which will be exclusive to BT Vision for a period of time from their release."
But Ian Maude, analyst at Enders Analysis, says although it's a positive move, he doubts the Sony BMG deal will drive strong customer demand for the BT Vision service.
"The two main things that drive demand for digital and satellite TV are movies and catch-up TV," said Maude, who added that BT has yet to announce a catch-up TV service.
"It's a good move in that music video is part of the broader offering that BT needs to have to appeal, but I don't think it will have much impact on demand for the service," said Maude. "Music videos can be watched on sites like Yahoo Music completely free of charge."
Morten Singleton, an analyst with WestLB said: "It's still too early to gauge whether BT Vision will be a success, but they have got the right idea because they are focusing on video on demand, which people want, rather than on subscription services with hefty fees where users only take a fraction of the content".
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