ESPN has lost the rights to show live Premier League games for 2013-2014, with BT snapping up the 38 matches on offer.

It was thought that ESPN would have a touch time holding on to the rights, with broadcasters such as Al Jazeera mooted to bid for the games, but it's BT which has won the rights and will get to show Premier League content when the 2013 season commences.

ESPN had originally bought up the rights to show 46 Premier League games back in 2009, taking the content off the hands of beleaguered broadcaster Setanta.

The games were made available through BSkyB but you had to sign up and pay extra for the ESPN channel.

Money spinner

Now BT has the rights but the number has been lowered to 38 - it includes 18 of its first-choice picks and this means that BSkyB has managed to get its maximum quota of games, which is 116.

When it comes to money, Sky is now paying £760 million a year for 116 games, which is a huge increase considering it is currently paying £541 million a year.

Break this down to a game by game basis and it equates to £6.6 million – let's hope the likes of newly promoted Reading understand that they need to put in a good display for this money to make any sense.

In total, the Premier League is set to gain over £3 billion for television rights.

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BT insists that it is not simply building up BT Vision for the arrival of the eagerly awaited IPTV scheme Project Canvas, and is looking forward to enhancements to its platform, including the arrival of Sky Sports 1 and 2.

Speaking to TechRadar, BT's Andy Baker insisted that the arrival of two of Sky's premium channels was not the beginning of a journey towards a Canvas branded BT Vision box, but the continuation of a long term project to improve the much maligned service.

"I think we are doing lots to our online TV service and there's a lot of exciting things happening," said Baker.

"There's Canvas happening, there's our investment in a fibre network and all of those things are working towards a better TV service for our customers.

"I don't think this is the start of the journey – we have been on the journey for a couple of years and we already have a very, very good TV service but what we haven't had is a very good TV service for sports fans."

Strong service

"I think that [the arrival of Sky Sports 1 and 2] will make our TV service phenomenally strong and as Canvas goes along we will enhance again," he added.

"We will continue to build and build, as more of these propositions come to market."

Sky has already accused BT of using the IPTV Canvas project as an excuse to relaunch BT Vision – but the platform will clearly benefit from the sports offering.

Interestingly, even without factoring in Sky's price hike, BT are making a major loss on the offering, so it appears that the communications giant is prepared to swallow a major hit to its profits if it can lure people to its bundled services.

BT has described Ofcom's ruling on Pay TV – which will force Sky to sell its two main sports channels to rivals at prices set by the watchdog – as 'disappointing, but a step in the right direction."

BT raised complaints against Sky's handling of premium content and the wholesale rates they charged their rivals for access to movies and the likes of Premiership football, and had a large part to play in Ofcom's decision to investigate.

However, the media giant believes that the media watchdog should not have ducked the issue over movies by referring it up to the Competition Commission, and should have been made to offer all of its sports at rates set by Ofcom.

"Today's decision from Ofcom is disappointing but a step in the right direction," said Gavin Patterson, Chief Executive Officer, BT Retail.

"We will at last be able to sell two premium sports channels. We aim to offer Sky Sports1 and 2 at lower prices than those which have been available.

"We hope to bring them to the market in time for the new Premiership football season but that will depend on Sky now complying with Ofcom's decision."

Criticism

"However, Ofcom should have gone much further than it did," added Patterson.

"They have dropped movie channels, which should have been included.

"They should have included all Sky Sports channels, not just two.

"The wholesale price for the two sports channels is higher than the regulator had previously suggested.

"Pubs and clubs should also have been offered some help as they have no option but to pay sky high prices.

"Ofcom has not set a regulated price for HD channels.

"Sky may appeal against this decision but Ofcom's remedy should be implemented without delay so that customers can benefit from lower prices."

BT's Richard Young insists that the company's involvement in Project Canvas does not spell the end of BT Vision, believing that the company can benefit from serving as an aggregator of both free and paid-for content.

BT is one of the partners in Project Canvas, which is awaiting the final approval of the BBC Trust, but already has its own IPTV offering, BT Vision, in the market.

Vision has hardly been the success that BT hoped for, and Sky's Mike Darcey recently went on record as suggesting that BT was using Canvas as an opportunity to re-launch its television offering.

Aggregator

Speaking at the IPTV World Forum, Young, the Business Development Director of BT Vision, admitted that Project Canvas will bring more competition to BT Vision, but remains confident that a BT Vision with Canvas package will prove irresistible to consumers.

"We will continue to provide BT vision to our customers," said Young. "We need to aggregate key content and we see services which we think will come on to Canvas as complimentary

"We can see a role for us as aggregating free content but also the best pay content as a on overall package with services."

With Canvas designed to be an open platform that could feasibly bring IPTV from any number of other companies, Young confessed that competition to be the most successful Canvas platform would be big, but he believes that BT is ready for the fight.

"We face more competition...but we are ready to accept that challenge to provide what's best for our consumers."

BT has revamped its Vision+ set top box, radically overhauling the chassis and controller and tinkering with the power consumption.

The new set top box's overhaul means it's now available in black (compared to silver before) which matches the 'iconic' (according to BT) Home Hub wireless router.

The controller will also be made iconic too, being encased in the same black as the box - but also features "enlarged characters to improve legibility in lower lighting conditions and for the visually impaired."

Less power to the people

Power consumption has been addressed as well, with the box now consuming 12 per cent less power when in use, despite being probably 25 per cent more iconic thanks to the new black chassis.

BT did say that a future Vision box will be able to receive Freeview HD channels, but TechRadar has spoken to the company and it has confirmed that this release will not be sporting the upgraded channel list, but a future update will still fulfil this promise.

The service has been underperforming since its launch, with CEO Marc Watson stating that the service will not hit the three million subscribers targeted by 2010, but it's likely the company is looking to this new launch to help boost uptake of the service.

If only BT can now find a way for the Vision+ box to stop recording Scrubs half way through for no good reason on a semi-regular basis then perhaps that too might entice customers to stop paying for another service instead.

The ASA has upheld a complaint against BT over an advert that misled people over the availability of movies on BT Vision over the Sky Platform.

The advert suggested that movies were available on the misfiring BT Vision platform 'before they're shown on Sky Movies'.

Which is technically true, but of course if you compare like-for-like, BT's paid-for on-demand service is really comparable to Sky Box Office – where the movies were available at exactly the same time.

That technicality was not enough for the ASA, and the complaint – by Sky and two members of the public (R.Murdoch and J.Stelling?) – was upheld, despite BT insisting it was merely trying to show that movies are available without subscribing to a movie channel.

Like for like

"We considered that, because in terms of the on-demand availability of new release films, the most similar Sky service to BT Vision was Sky Box Office, whereas the comparison drawn was between BT Vision and Sky Movies, the ad was likely to mislead by giving viewers the impression that they would be able to see new movies more quickly with BT Vision than with Sky when that was not the case," said the ASA in its ruling.

"We noted on-screen text stating 'New release films are available on Sky Box Office at the same time as BT Vision' but concluded that was insufficient to remove the overall impression that new release films were available more quickly with BT than with Sky. We concluded that the comparison was likely to mislead."

Some would suggest that BT look a bit pathetic if it has to resort to these kind of cheap tricks.

On demand TV platform BT Vision has confirmed that a future generation of its V-box will be able to receive Freeview HD channels.

Speaking to TechRadar, BT's Head of Programming, Michael Barry, revealed that work is in progress, although no firm date has been announced.

"BT Vision are working on a Freeview HD compatible box," said Barry, "however, we don't currently have a date for launch."

Freeview HD broadcasts will begin rollout next month though only the Granada region and London will be able to receive channels before Christmas.

To receive HD channels consumers will need set-top boxes with DVB-T2 tuners, though none are expected to go on sale until 2010.

Broadband customers

BT Vision is only available to BT Total Broadband customers and all of its video on demand content (which includes new and classic films, US TV box sets and kids TV) is delivered via broadband.

"High definition is challenging for us because of the bandwidth," Barry told us. "We're focused on blockbuster films and the key TV genres that really benefit from HD, such as wildlife programmes, which have to be downloaded over a few hours before they can be played.

"We are constantly looking at ways of improving compression of HD, but BT has begun its roll-out of a new fibre-optic network." One of the main reasons for the new network, Barry told us, is for delivering HD content. "Our next generation V-box is coming soon and will be able to handle HD," he said.

It's likely that dedicated Freeview HD set-top boxes will also feature broadband connectivity and full access to the BBC's iPlayer. Although BT Vision already includes a 'catch-up' service from the BBC, it doesn't have access to iPlayer.

BT Vision's CEO Marc Watson has admitted that the service will not hit its target of between two and three million subscribers by December 2010.

The old target has been something of a millstone for BT Vision, the IPTV service which has not had the expected impact on the British TV market.

That goal was set by BT's CEO Ian Livingstone, but Vision Chief Watson has now downgraded that to around one million, which is still more than double its current subscription level of 433,000.

"We have not yet found the best way of explaining what the benefits are to consumers, and what [BT Vision] stands for," Watson told the Financial Times, when the 2010 target was raised.

"We won't hit 2-3m customers over that time."

Rivals

Despite its financial might, BT has some major rivals in the TV arena that are making it difficult to get purchase.

Virgin Media's cable service has proven popular, not least because of the packages that include high-speed broadband such as the flagship 50Mb offering.

And Sky is closing in on the 10 million mark for subscribers to its satellite television platform.

In the latter's case, IPTV is very much on the agenda; Sky Player has been running from some time, offering live channels, premium downloads and catch-up TV over the internet and it is only a matter of time before Sky's HD set top boxes will be enabled for connection to an ethernet cable.

BT Vision has renamed its Freeview/VOD PVR, edged up its subscription prices and is planning to charge for the digital recorder.

The box will now be know as the BT Vision+ . It will continue to be made available free of charge for the first year to new broadband subscribers, but the connection fee of £30 has been dropped.

The monthly price of its Bronze viewing package will also rise from £13.70 to £14.68. BT says: "This is the first price increase since the launch of the value packs.

"In this time we have greatly added to our OnDemand content and extended the TVReplay service to cover all 5 terrestrial channels."

Silver and gold

The monthly cost of the Silver and Gold packages remains static at £17.61 and £19.57 respectively.

BT admits it will also levy a one-off payment of £90 for the box when a customer renews their broadband subscription. If they choose not to renew, BT says it will levy a charge of £194 .76 for the unit.

Speaking on its forums, BT explained: "The higher price only applies to customers that are out-of-contract for broadband and choose not to commit to us for a further 12 months.

"We previously provided a VBox and Powerline set for free, only to see these sold again on auction sites.

"To keep the prices down for customers that are willing to make a commitment to us we felt it was fair to ask a reasonable price from those that choose not to commit."

From Home Cinema Choice

Only recently launched amidst a fanfare of TV and print advertising, BT Vision is a 'hybrid' service which gives you a Freeview PVR that can also download TV shows and films via broadband.

BT's pricing schemes change like the British weather, but the V-box is currently free, although there's £90 of installation and connection fees to contend with. A self-install option should remove £60 of this by the end of the year. The catch is you have to be a BT Total Broadband option 2 subscriber, paying at least £23 a month for up to an 8Mb connection.

On paper the V-box is a sexy proposition, with twin Freeview tuners and a 160GB hard disc. It's hi-def capable, (although there is no HD material currently available, this may or may not appear at some point in the future) and has an HDMI output. There's also an RGB Scart and digital audio out. On-demand content is routed from your broadband modem via BT's Home Hub wireless router (although any BT other router should work as well).

Aside from a free PVR (allegedly worth £199), users get free access to the BT Vision EPG, a 14-day onscreen programme guide. By Sky or Freeview standards it's quite slick, with not just series links, but a magazine-style experience.

As a Freeview PVR, the V-box is a worthy alternative to Freeview Playback or Top Up TV Anytime, especially if you're getting the broadband anyway.

As with Philips' Freeview adapters, picture quality is good, whether live or recorded. BT's broadband network isn't perhaps as impressive as Tiscali/Homechoice, and that's reflected in the high compression seen on the recordings, which push even MPEG-4 to its limits. Don't be surprised to occasionally encounter the sort of blocky images you're used to from second (even third) division Freeview or satellite channels.

The on-demand part of BT Vision is all subscription-free, with pay-per-view charges varying from 29p for a music video to a competitive £2.99 for top movies. Many users are likely to go for a subscription, though, which start at £3 for TV Replay, going to £9 if you add a general entertainment library, and £6 for unlimited music videos or children's shows. The whole lot (not including PPV films) can be had for £14. If you're used to Sky One then you'll find the range a little outdated, but as a Freeview upgrade it's quite good.

Sky Sports isn't available, but from August you'll be able to replay any Premiership matches as soon as the live game has finished.

We're quite surprised the TV Replay catch-up service isn't thrown in for free, and £3 a month is a lot for a service that currently only has Channel 4 highlights. BT's hoping to add the BBC and ITV this year, although Five's way behind.

Conclusion

The BT Vision interface is built by Microsoft, and it looks pretty nifty, with lots of picture-in-picture menus and slinky graphics that put the other services to shame. But what looks good in a showroom has to be reliable every day at home, and we've had continuing trouble with our test boxes. There are numerous angry reports on user forums, too.

The service will get a Firmware upgrade in the Autumn, which may cure these hiccups. Until then, we can only give BT Vision a cautious recommendation. As an HD source it's a non-starter and its VOD selection is limited and expensive.

High-definition rating: 1/5. Video on demand rating: 2/5

BT Vision's iTunes-style movie and TV download store is branching out into free content supported by adverts. So far just three movies have been made available as part of a three-month trial, but it could eventually lead to more free content being released in this way in future.

The three movies - Mischief Night, Played and The Punk Rock Movie - can be downloaded from the BT Vision Download Store now, but you'll also need to grab the Hiro Media film software from the same site to see the films in full flow.

Naturally the free movie downloads are only open to PC users who have Windows 2000 or higher, alongside Windows Media Player 9. Yet again, Mac and Linux users are excluded.

BT says once the films have been downloaded there are no further restrictions - you can watch them as many times as you like in a month, and even share them with friends. However you will have to complete a demographic survey so you can be targeted with adverts that suit your interests, the ads changing dynamically every time that you watch.

Ad-free content too

You will, of course, still be able to buy advert-free content from the BT Vision Download Store, from individual TV episodes to blockbuster Hollywood movies. Prices start from as little as £1

BT Vision has launched its sports package, with matches available for £1.99. But although the pay-as-you-go nature of the service sounds like a great idea, BT Vision Sport will only enable you to watch 'near live' broadcastings of Barclays Premier League matches.

You won't be able to see those matches shown live on Sky Sports and, er, you'll have to watch them after 10pm on the day of the match. Time for the matchsticks.

You can, though, get a month's worth of 'near live' matches for the princely sum of £4.

However for £12 a month BT is enabling you to add some live matches to your package in the form of the pay-per-view package held by Irish-based Setanta Sports . This is the batch of pay-per-view matches also available to Sky Sports subscribers, which for the last few seasons have been known as Prem Plus. The price also includes Scottish Premier League games, too.

BT is, of course, focusing on the pay-as-you-go nature of the deal coupled by per-match pricing unrivalled elsewhere. The pay-as-you go and £4 monthly subscription will also cover 'near-live' coverage of up to 125 Coca Cola League and Carling Cup games.

Setanta Sports

BT's hybrid Freeview and IPTV service has had a low-key start since its launch in December. But it said on launch day that it would be partnering with Setanta to show the so-called 'near live' coverage, which is simply time-delayed with no editing.

BT Vision says subscribers will be able to get 'near live' coverage of 242 Premier League matches per season. Setanta Sports' live action includes 46 Premier League matches from England and 60 from Scotland. It also includes action from other European football leagues, US PGA tour golf, Nascar and Magners League rugby.

BT has dismissed the claim that a unified BBC-ITV-Channel 4 on-demand TV service would pose a threat to its own BT Vision IPTV service . Details emerged last week which suggested that the terrestrial broadcasters were discussing teaming up to launch a unified on-demand venture, codenamed Project Kangaroo .

Such a service would be in direct competition with BT Vision as well as the Sky Anytime on-demand service for the PC.

But a BT Vision spokesperson told Tech.co.uk this morning that BT is not worried about Project Kangaroo as it would be aimed at a different audience. "BT believes customers increasingly want entertainment on their terms and on the device of their choice - whether that be laptop, MP3 player, TV.

"For the moment, Kangaroo appears to be a project concentrating on the former, whereas BT Vision is concentrating on the latter. We expect convergence will mean that the markets will soon overlap. But BT is very confident that we have a compelling and exciting proposition, and that customers will agree with us."

It's a bit of a cagey response from a company which will surely feel threatened by the prospect of a free on-demand terrestrial service.

At the moment, BT Vision allows programmes to be downloaded to its set-top box, and charges for each download. The question is: would people be willing to pay for BT Vision if they are able to get a similar service for absolutely nothing?

BT announced today that it has made some exciting new additions to its BT Vision Download Store . New partnerships with a whole new batch of content partners has made a vast new range of content available for download.

The BT Vision Download Store is a non-exclusive online video store available to all of the UK's 14 million broadband customers - regardless of which internet service provider they use. Customers of the store can download a wide range of film, television and music to PCs and portable devices for viewing indoors or on the move, at prices starting from under £1.

The new content partners announced today are: Avalon, Cookie Jar, Contender Home Entertainment, FremantleMedia, Gong, Nelvana, Real Estate TV, Revelation Films, Shorts, TVF, TwoFour Broadcast, Vidzone Digital Media and Warner Bros.

Examples of the new material available include Edinburgh and Beyond (Avalon), Arthur, Mona the Vampire and The Adventures of Paddington Bear (Cookie Jar), Peppa Pig (Contender Home Entertainment), Till Death Do Us Part and Tommy Cooper (FremantleMedia).

Dan Marks, CEO BT Vision, said: "BT Vision Download Store is proving to be a really compelling service. Now with even more content from the best producers in the business including great music videos, TV and film, it's one of the most innovative entertainment options available anywhere."