http://ipcommunications.tmcnet.com/n...885.htm?p=news
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[March 28, 2007]
Digital: Sky iTV sales rival launches
(Marketing Via Thomson Dialog NewsEdge) Sky is facing fresh competition in the interactive TV (iTV) ad market with the launch of a rival red-button service from Chellomedia.
The Liberty Global-owned firm will go head-to-head with Sky by selling the bandwidth necessary for brands to launch iTV campaigns on the digital-satellite platform.
Sky currently sells red- button bandwidth at pounds 25,000 per megabit, with the average dedicated advertiser location costing about pounds 100,000. Chellomedia is expected to undercut this to attract new advertisers to the medium.
Sky's dominance of the red-button market was challenged last year when technology company Emuse launched an iTV service allowing advertisers to run campaigns simultaneously across digital-satellite, digital-terrestrial and mobile platforms.
The arrival of a third iTV bandwidth provider in the market is likely to drive down costs, potentially prompting an influx of cash from big-brand advertisers keen to experiment with the medium. Price has traditionally been a barrier to entry, with the most sophisticated executions costing up to pounds 180,000.
Commercial broadcasters have cut the cost of running iTV ad campaigns in a bid to win over sceptical FMCG and entertainment brands. Last November ITV and the Flextech/UKTV sales house both cut thousands of pounds worth of airtime-premium costs from their red-button rate cards for this year.
Chellomedia is the con-tent division of Liberty Global. The company provides iTV applications and services for distribution over TV and broadband platforms across Europe.
Copyright 2007 Marketing. Source: Financial Times Information Limited - Europe Intelligence Wire. "
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