TalkTalk halves price of pay-TV service

TalkTalk halves price of pay-TV service

TalkTalk has mounted the second stage of its push into pay-TV with a cheaper set-top box targeting lower-income households and those watching their spending as Britain climbs out of recession.

By Christopher Williams, Technology, Media and Telecoms Editor

3:49PM BST 25 Sep 2013

The new “essentials” package halves the monthly cost of TalkTalk’s internet-based television service and makes it available to the majority of its broadband and phone subscribers for the first time. For £7.50 per month it offers broadband and phone, plus all the Freeview channels with a seven-day catch-up facility and the chance to bolt on premium channels such as Sky Sports and Sky Movies on a pay-as-you-go basis. Line rental is not included.The service is based on YouView, the set-top box technology TalkTalk developed in collaboration with BT and the main terrestrial broadcasters.

TalkTalk entered the pay-TV market last year and has attracted half a million of its upper tier of 1.1 million “plus” customers to its service. It has roughly three million lower-tier broadband and phone customers and said it is targeting the a similar degree of take-up.

Chief executive Dido Harding said: “We’re the fastest-growing TV service in the country. This is really exciting for the business over the next few years.”

In the last quarter, TalkTalk recruited 160,000 households to its television service, compared to only 23,000 who joined BT’s.

BT is pursuing higher-income pay-TV households with its heavy investment in BT Sport and live Premier League football rights to challenge BSkyB.

Ms Harding said: “I think you are seeing genuine segmentation in the market. We are going after the freeview households who couldn’t afford pay-TV before.

“The YouView platform makes that possible now.”

TalkTalk’s new package comes with a basic set-top box that does not allow recording but means a smaller hardware subsidy is required within the monthly fee.

Like BSkyB, talkTalk has so far not reached a wholesale deal to carry BT Sport. Ms Harding said BT “puts a higher valuie on those channels than we do”.

Continuing its push down market, TalkTalk also introduced a new £2.50 per month, broadband-only package on Wednesday, also aimed at lower-income households and the growing numbers who do not use their home phone line.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: