Alba pulls plug on web TV venture

ELECTRONICS firm Alba has sounded the retreat from its foray into internet-enabled television, pulling the plug on its Bush venture that will lose it £17.85m this year.

The Essex-based group launched its dial-up internet TV 18 months ago and has failed to sell enough sets to make the project viable despite subsidies that slashed the price of the 14-inch sets from £149 to £49. The group had hoped to sell 750,000 sets within a year but has secured only 170,000 registered users, who will be transferred to ITV Digital's Active service.

Results for the half-year to 30 September are due on 6 December and will include losses incurred on the venture, though no further charges are expected.

Alba chief executive Daniel Harris is convinced there is a future for mass market internet access through TV, but said the Bush project could not be brought to profitability in a reasonable time. Sales of the group's core domestic electronics, which include the Goodmans brand, are in line with targets.