BT Vision to broadcast ITV programming

LONDON - ITV is to sign a landmark deal with BT that will make programmes such as 'Coronation Street' and 'The X Factor' available to watch on BT Vision TV.

The move means that the commercial broadcaster's new catch-up and archive programme service will be available to watch on a new platform for the first time.

Until now, ITV's programmes have only been available to watch as replays on the online on .

The tie-up -- the value of which has not been revealed -- with BT is expected to be the first of many more, as ITV strives to meet its target of doubling its revenues from online by 2012.

It is believed ITV received a guaranteed minimum payment from BT, but as BT Vision's customer base increases so will ITV's revenue from the partnership.

The agreement will give BT's two-year old television service a boost, as it attempts to expand its customer base beyond the current level of 340,000, which is just one tenth of the size of rival Virgin Media.

BT Vision is now the only platform in the UK carrying catch-up services for all four terrestrial broadcasters. It already offers catch-up programming from the BBC, Channel 4 and Five.

Customers will have to subscribe to BT Vision's Replay package, which costs £3 a month, to watch archive programmes from ITV's library.

The move comes in the wake of the derailment of a joint venture by ITV, the BBC and Channel 4, to grab a slice of the on-demand market through an online catch-up service codenamed Kangaroo.

The joint venture was a major plank of ITV's plan to exploit its digital potential, but Ashley Highfield, the venture's chief executive, resigned this month.

Kangaroo has also been referred to the Competition Commission.

Highfield has taken up a role at Microsoft UK as managing director and vice-president, consumer and online.

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