Pushing the Interactive Button

30 April 2004

British consumers are growing more and more comfortable with interactive television betting services, and all of the country's national digital broadcasters--BBC, Channel4, ITV and Sky--are involved in one way or another with betting ventures. Clearly, iTV betting has arrived and is hear to stay.

Sky Interactive, a division of BSkyB, is the founder and global leader in the development and delivery of advanced interactive television services, operating a wide range of interactive services available to Sky digital customers.

Last week Sky Interactive commenced digital distribution for Camelot, operator of the U.K. National Lottery.

The new service can be accessed by pressing the interactive button on the Sky remote and selecting the National Lottery from the Sky Active menu or by pressing the red button when it is featured in the National Lottery.

The Process: 1) Choose the National Lottery from the main Sky Active menu. 2) Set up a National Lottery account by selecting "Register Now" on the main menu and entering personal information, including debit card details. (The information will be securely stored, and the player can then transfer money straight into his account.) 3) Select a username and password. (Players who already have National Lottery Web accounts can use the same details to log in via the TV.) 1) When the registration is finished, the player can play Lotto by simply filling out the lottery ticket on screen using the Sky remote.

Winnings are shown automatically the next time a players signs in.

"The launch of Lotto on Sky Active is part of our plan to offer more ways to play the National Lottery and as a result, generate even more money for good causes," Camelot's director of interactive television, Richard Hurd-Wood, said. "Our research shows the service on Sky Active will appeal to those lottery players who don't make the time to buy their ticket regularly at their local shop or supermarket and want the convenience of buying their lottery ticket through interactive TV.

"Just think about it, if you're tuned into the football on Sky, you can now buy your Lotto ticket at the touch of your TV remote--without even missing a moment of the match."

Camelot's publicity manager, Jenny Dowden said that the group might explore working with additional iTV providers, depending on the success of the Sky Active venture.

"We expect around 5 percent of sales to come from interactive platforms by the end of the current license (in 2009)."

Camelot's shareholders have invested £45 million in the group's interactive offering (Internet, interactive TV and mobile phones) over the seven-year license period.

Researchers with KPMG predict that iTV gambling will be a £2.8 billion industry by 2006.

BSkyB

BSkyB is the leading provider of digital television services in the United Kingdom and Ireland. More than 17 million viewers in 7.2 million households enjoy an unprecedented choice of movies, news, entertainment and sports channels and interactive services on Sky digital, England's and Ireland's first and most popular digital television platform.

The easy-to-use Sky guide enables people to plan and control their viewing up to seven days in advance. There are 4.19 million 16 to 30-year-olds living in Sky digital homes in England--40 percent of U.K. population in that age bracket.

Sky Interactive, a division of BSkyB, is a global leader in the development and delivery of advanced interactive television services, operating a wide range of interactive services available to Sky digital customers. Its business streams include games, betting, dating, retailing, information services and interactive advertising. The group has led innovation in interactive television technology and design and develops interactive enhancements to television programming both for BSkyB's own channels and a growing number of third-party channels on the Sky platform.

Sky Active, Sky Digital's interactive portal, incorporates enhanced TV applications, such as Sky News Active, Sky Sports Active, Sky Movies Active and services such as email, SMS messaging, games, banking, shopping and betting.

The Betting Zone on Sky Interactive carries a selection of bookmakers, including Ladbrokes, Blue Square, Littlewoods, Bet Direct and Sky Bet, as well as spread betting with Bet Hi Lo from Sporting Index. To get there, the player presses the interactive button on the Sky remote control and then "9" for The Betting Zone.

The BBC

The BBC, which maintains that it is not a betting company, recently debuted interactive games-for-prizes programming. The network in March began enabling viewers to participate in a television game show--using their mobile phones--with the chance to win prizes.

The new BBC One Show, "Come and Have a Go... If You Think You're Smart Enough," pioneers the integration of Java mobile, interactive television and Internet platforms with television programs, enabling viewers to compete in real time with a live audience for a cash prize of a minimum of £30,000.

To participate, players must download the "Come and Have a Go..." Java application across WAP onto Java-enabled phones on a weekly basis before the start of each show. The application is engaged via a registration code at the start of the program.

Like viewers playing across other interactive platforms, mobile players have to register for their unique codes each week prior to broadcast for the opportunity to win.

Real-time interactivity through Java phones is enabled by time-stamping software developed by BBC New Media & Technology in conjunction with Developnet. The software measures the timeframe each question is answered in to ensure Java mobile players compete for the jackpot under the same rules and restrictions as the studio teams.

At the beginning of each broadcast, the user briefly goes online via the mobile device to synchronize interactivity between the broadcast and mobile device. Following each broadcast, the user sends in his score and answers to see whether he has a high enough score for a chance to win.

Angel Gambino, controller of business development and emerging platforms, said that "BBC New Media & Technology is continuously exploring the use of interactive mediums with broadcast. Recently we've broken new ground by using SMS interaction for the Johnny Vaughan show and now Java mobiles for 'Come and Have a Go...' to extend traditional broadcasting formats and give viewers a more immersive viewing experience."

Channel 4

Channel 4 recently announced plans for creating an interactive betting service and is said to be partnering with bookmaker William Hill. Unlike the BBC, Channel 4 receives no public funding; it is funded entirely by its own commercial activities

In addition to the main Channel 4 service, the Channel Four Group operates a variety of digital pay channels, including the E4 entertainment channel, E4+1, and three film channels. It also operates a wide variety of online and broadband services that cover entertainment, information, education, health, careers and many other areas.

Blue Square

Gambling operator Blue Square, acquired by Rank in January 2003, has fixed-odds betting services on the Internet, interactive TV, WAP and telephone and is one of the largest interactive betting services in the United Kingdom. Blue Square will be integrated with Rank Interactive Gaming to create a major force in the online gaming market with a combined customer base of over 375,000 customers.

According to Blue Square's Ed Pownall, the company is the only bookmaker across all three iTV platforms: Sky Digital, NTL & Telewest. Interactive betting turnover, he said, "accounts for about 10 percent of the total turnover."

ITV

ITV, the biggest commercial television network in the United Kingdom, in 2002 signed a deal with Sportech leading to interactive betting on a wide variety of programs and sports. Both companies are expecting to benefit from the anticipated growth in interactive TV gaming and betting. The deal will last for five years, with an option for a two-year extension. ITV stands to earn a share of the turnover of Sportech's betting activities. ITV2 was the fastest growing digital channel in the United Kingdom in 2003.




Rob van der Gaast has a background in sports journalism. He worked for over seven years as the head of sports for Dutch National Radio and has developed new concepts for the TV and the gambling industry. Now he operates from Istanbul as an independent gambling research analyst. He specializes in European gambling matters and in privatizations of gambling operators. Rob has contributed to IGN since Jul 09, 2001.