Murdoch Casts Light on BSkyB's Interactive TV Roadmap

In the presentation to financial analysts that followed BSkyB's release of its financial results and subscriber acquisition figures earlier this week (see article in this issue), CEO James Murdoch cast some light on the company's interactive TV product roadmap.

Noting that the company's SkyBet interactive wagering service will "pretty soon--probably within the next year--be our second-largest revenue line" and that it is therefore "obviously going to be a more relevant part of our business going forward," he revealed that the company plans to take advantage of the pending liberalization of UK gaming laws--which will result in casino-style gambling being permitted on interactive TV platforms (currently only fixed-odds betting games are allowed)--by launching Sky Vegas Live 2, a sister channel to its existing fixed-odds betting channel, Sky Vegas, which will "include more traditional gambling formats" such as "roulette, poker and other card-based games." He then displayed an image of a new poker app that Sky has developed for the channel: "This is an interactive television application that works--we just have to get it out into the marketplace--where you can play live poker in tournament- style formats with other Sky customers," he explained. "If you look at the audiences for poker which have been growing a lot, and you look at the participation in it that's been growing a lot, and our ability to leverage this on a wide scale, given the number of customers we have, we really see a very exciting opportunity in the UK gaming and gambling marketplace." (Note: for more on Sky's thinking on ITV poker, see [itvt]'s interview with Sky Interactive managing director, Ian Shepherd, in Issue 6.10 Part 1.)

Murdoch also displayed an image of a redesign of its EPG that Sky has undertaken, noting that, while maintaining "a familiar look and feel," it will offer "better navigation, greater flexibility, greater control, and enhancements of the customizable features that customers talk about wanting." Among other things, the revamped EPG will include a new favorites section and new parental control features. The latter will allow parents to use a PIN to prevent access to any channel they choose, and will even let them use the PIN to prevent access to any program recorded on their Sky+ DVR.

Murdoch also discussed the company's planned HDTV set-top box, which is scheduled to launch early next year. "This is not just about the picture quality and the sound quality," he said. "This box is an important platform for us for the future." He explained that it has a "vastly expanded hard disk drive" (he did not specify how large it will be) that "gives us more flexibility." He added that "a set of features that take advantage of that new hard drive will be announced in due course." He also stated that the new box will include "double USB connectivity" allowing customers to connect "peripherals for storage and portability," and that, more significantly, it will feature Ethernet connectivity. "As we see high-bandwidth networks emerging as a ubiquitous communications choice over the next ten years, it's very important to beef up our network presence," he explained. He added that Sky plans to eventually add Ethernet connectivity to all its set-tops.

After revealing that the Sky's recently launched Sky Mobile service will shortly offer "a handful of live television channels" and the ability to schedule a Sky+ recording remotely, Murdoch went on to provide some more details about the Internet-based VOD service which the company plans to launch later this year for Sky Movies and Sky Sports subscribers. He stated that the service will be enabled by "an application, like iTunes or something, that you download onto your laptop or PC," and that subscribers will be able to download DVD-style movies, complete with "extras." He also said that Sky is "building high levels of personalization and recommendation into the product." Sky Sports subscribers, he added, will be able to access "over 1,000 clips" on the service, including game highlights from Sky Sports' coverage of Barclays Premier League and UEFA Champions League soccer, rugby, golf, and cricket.

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