Sky explores IPTV launch for Picnic

Picnic, BSkyB's proposed pay DTT offering, could launch as an IPTV service that would rival BT Vision.

Industry sources said the satellite giant is exploring other distribution opportunities for Picnic, one of which is IPTV. Broadcast understands that Sky's priority remains winning a DTT licence from Ofcom, but it is looking at IPTV as an add-on further down the line.

Using IPTV would mean Picnic could still launch if its DTT licence application is rejected. Sky already charges for its channels via Tiscali's IPTV service, so it would not need to apply for a new licence, said an Ofcom spokeswoman.

It is understood that Picnic is talking to software partners, one of which is Microsoft, about delivering the service via an IPTV set-top box or on PCs via the DTT platform.

Sky Picnic, which will include broadband and telephone services, is planned as a pay-TV service offering basic and premium content. The channels proposed are Sky Sports 1, Sky Movies Screen and Sky One, with content from Sky News. Initial third-party channels include Disney Channel and Discovery Channel.

Picnic will initially consist of three MPEG-2 video streams. Sky wants to add a fourth broadband channel, dedicated to Sky News, and is seeking Ofcom approval for an MPEG-4 video stream to meet the capacity demand.

Ofcom expects to publish its findings on the Picnic licence application by early summer.

Sky declined to comment.

Source: Broadcast Now