BSkyB is to grow its in-house production activities and investigate new and untried distribution channels such as the use of ADSL technology and UMTS wireless distribution, according to CEO Tony Ball.
Ball, speaking at a recent presentation on BSkyB’s year-end results, emphasised the need for BSkyB to grow its in-house production activities. He cited HBO in the US as a model BSkyB could usefully follow. He said such an approach allowed the company to build an asset on its balance sheet instead of merely renting content. However, he said that BSkyB had no immediate plans to acquire independent production companies in the UK. BSkyB is committed to spend Pounds 25 million on the generation of original movies for television over the next two years.
In terms of new distribution channels, Ball indicated that BSkyB could ultimately look to expand its interactive services beyond the bounds set by satellite. "We are in trials with BT for ADSL in west London," said Ball, adding that it was too early to say if BSkyB would offer services in this way in the future. He also said that BSkyB was looking at the possibility of offering services via UMTS. "We are looking at [UMTS]. We are interested from a content point of view," he said. Ball suggested one application for this could be for subscribers to access Sky Sports News on their mobile phones.
