Sky's IPTV move prompts BT review
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BT is to review its marketing partnership with BSkyB after Sky's £211m acquisition of broadband provider Easynet, confirmed on Friday.
The move propels Sky into the fast-emerging internet protocol television (IPTV) market, and directly into head-to-head competition with BT—which is working on its own IPTV offering—as well the merging ntl and Telewest cable groups.
BT's web site and promotional literature markets Sky subscription packages. BT Retail CEO Ian Livingstone told The Sunday Telegraph "the relationship between BT Retail and Sky will have to be reviewed".
An un-named executive added: "Obviously BT and Sky are to become direct rivals now that both companies have signalled their intent to provide video-on-demand and TV-over-the-internet. It is hard to see what BT has to gain from promoting Sky."
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