Through its BT Vision subsidiary, the telecommunications giant will offer customers what it calls softcore content on demand. According to a company spokesman, all content would have to comply with standards established by regulators and the company for taste and decency.
“In common with many U.K. entertainment providers and in response to anticipated customer demand, we expect BT Vision will carry some adult entertainment services,” a company spokesman said.
Analysis from British telecommunications research firm Enders claims BT’s decision to begin offering adult content is driven by the company’s desire to retain its broadband customer base.
Video-on-demand and pay-per-view content has been available in the U.K. for nearly a decade, according to Enders, which estimates that cable operator Sky nets approximately $328 million per year in PPV revenue.
According to analysts at Enders, the lion’s share of PPV revenue comes from sports and adult content. Sports, which accounts for 60 percent of all PPV revenue and adult content, which account for an additional 25 percent, seem to be the only types of content consumers are willing to pay for, according to the research firm. Cable operators typically offer all other types of content free of charge to encourage consumers to incorporate VOD into their viewing habits, a spokesman for Enders said.
“Customers appear to be willing to pay mainly for difficult-to-access premium sports content and adult material, as well as for films and leading TV shows,” a spokesman for Enders said.
If the decision to program adult content pays dividends for BT in the long run, the company will have to make strides to narrow Sky’s lead. According to Enders, BT projects to have 800,000 subscribers by 2010. By contrast, Sky, which has been distributing adult content for more than a decade, projects 8 million subscribers by 2010.
