Channel 4 switches off broadband delivery

Channel Four Interactive is kicking broadband content to the kerb and will now focus on interactive TV. The broadcaster is blaming this on the slow rollout of ADSL and the lack of cable modem access in UK homes.

The TV company's interactive arm has been quick to develop cross platform multimedia projects. One of its greatest triumphs is the Big Brother website that streams a variety of live audio and video feeds.

However, according to Peter Pedersen, interactive chief technology officer at Channel Four Television, developing projects purely for broadband distribution is a loss leader.

"We are getting to a point where we can no longer justify big spending on broadband services because it just isn't generating the traffic," he said.

Pedersen added that the lack of broadband access into the consumer's home means there is a considerable drop in traffic to its web-streaming sites after work hours and at the weekend.

In contrast its interactive foray with Big Brother has proven to be an unexpected success. Thirty five per cent of the votes for nominations this year have been placed through the remote controls of interactive TV sets.

"The remote control is clearly the stronger tool," Pedersen said.

Colin Jenkins, director of special projects for Energis and ebusiness advisor to the Greater London Authority, argued that developing broadband content is a chicken and egg situation.

"The network providers are waiting for compelling content to drive demand for broadband services before they invest in the networks, but the content providers want to make sure the market can access the content before they put money into major projects," he said.

Robin Bosworth, director at consultancy company Schema, agreed that Channel Four was making the right decision to focus on interactive TV: "Broadband isn't going to take off for a long time after interactive TV - if at all.

"It'll be at least 2005 before companies can expect to make money out of interactive services for broadband."