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Feasibility Study of a Digital Platform for the delivery of UK ... - BFI

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<strong>UK</strong> FILM COUNCIL<br />

Access costs<br />

Minimum access costs to buy on-Demand movies by plat<strong>for</strong>m<br />

Operator service hardware cost (£) minimum monthly access fee (£) cost year one (£) cost year two (£)<br />

BSkyB nVoD Sky Box Office<br />

0.00 15.00 180.00 180.00<br />

BSkyB<br />

PVR On-Demand 199.00 25.00 499.00 300.00<br />

BSkyB Movie download 400.00 48.99 987.88 587.88<br />

Cable nVoD Frontrow 0.00 5.50 66.00 66.00<br />

VoD 0.00 5.50 66.00 66.00<br />

Homechoice VoD 0.00 17.99 215.88 215.88<br />

British Telecom Freeview Plus (VoD) 120.00 14.99 299.88 179.88<br />

Source: Screen Digest<br />

Notes<br />

1. Cost <strong>of</strong> Sky Plus is £199 <strong>for</strong> 40Gbyte or 160Gbyte model. Install is additional £60 or free with multiroom subscription (£10 a month).<br />

2. Sky Plus additional subscription fee <strong>of</strong> £10 a month is waved if customer takes two or more premium channels.<br />

3. Sky movie download service requires PC and broadband connection which we have added in <strong>the</strong> costs above based on a minimum<br />

£400 <strong>for</strong> a PC and £14.99 a month <strong>for</strong> a broadband subscription.<br />

4. The cost <strong>of</strong> a BT telephone line or equivalent is not included in any <strong>of</strong> <strong>the</strong> above figures but is required <strong>for</strong> all accept cable VoD. Cable<br />

phone line rental has also not been included.<br />

5. All costs are based on 2005 pricing.<br />

While pricing <strong>for</strong> on-demand movie transactions is fairly standardised, <strong>the</strong> up-front and on-going investment required in order to gain<br />

access to transactional on-demand services varies greatly. The table above shows <strong>the</strong> minimum outlay required to access on-demand<br />

movie services (<strong>the</strong> per-view cost <strong>of</strong> each movie is an additional cost on top <strong>of</strong> this). By far <strong>the</strong> most expensive is <strong>the</strong> new Sky Movies<br />

Broadband service <strong>for</strong> which a computer and broadband connection are required as well as a subscription to <strong>the</strong> Sky Movies pay TV tier.<br />

The minimum first year cost would <strong>the</strong>re<strong>for</strong>e be just under £1,000 falling to £587 in following years. Cable has <strong>the</strong> lowest year-one upfront<br />

cost at £66, even beating yet-to launch Freeview Plus <strong>for</strong> which a high priced Freeview set-top box purchase is required as well as a<br />

broadband Internet connection. However, this cable fee is based on taking <strong>the</strong> minimum entry-level TV only basic pack with no bundled<br />

<strong>Feasibility</strong> <strong>Study</strong> <strong>for</strong> a <strong>Digital</strong> <strong>Plat<strong>for</strong>m</strong> <strong>for</strong> <strong>the</strong> <strong>delivery</strong> <strong>of</strong> Independent <strong>UK</strong> films and Specialised films to <strong>the</strong> Home<br />

<strong>UK</strong> Film Council © 2006<br />

54

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