BT seeks cash for iPlayer and YouTube streaming

Posted by David Walker on Thu 11 Jun 2009

Are the days of free iPlayer numbered?

For the humble consumer, iPlayer and YouTube are free services, available as part of our broadband packages from just about every ISP. But those services do come at a cost to the broadband companies, with BT now chasing both the BBC and Google for some cash in return for carrying all that video.

BT has called for an end to the 'free ride' video websites have had on its network and is looking to charge content owners for delivery of their programmes. According to John Petter, managing director of BT Retail's consumer business: 'We can't give the content providers a completely free ride and continue to give customers the [service] they want at the price they expect'. It's not clear whether the comments indicate BT is looking to charge us for iPlayer and YouTube access, but if Google and the BBC refuse to pay up, it just might be an avenue that BT explores, along with limiting access to the services at peak times.

Indeed, last week, the BBC reported that BT broadband 'cuts the speed users can watch video services like the BBC iPlayer and YouTube at peak times', and that it was 'concerned the throttling of download speeds was affecting the viewing experience for some users'. So the limited access might well be an existing reality for BT's broadband customers. BT certainly isn't doing anything underhand, under the 'fair use' policy of its Option 1 broadband package, BT can cut video streaming from 8 megabits per second down to 896 kilobits per second between 5pm and midnight.

Mr Petter believes increasing number of content providers were 'developing very profitable business models' with products that had free use of BT's networks, but at the same time, building significant costs to BT's business, adding that 'if it wasn't a significant sum, we wouldn't be focused on it.'

In response, the BBC said that 'despite its popularity, the BBC iPlayer is just one of many services on the open internet and only makes up a small percentage of total internet traffic in the UK'. Google has not commented on the matter.

Link: BT (via FT)

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