NTL to launch video-on-demand

CABLE companies NTL and Telewest are weeks away from launching a video-on-demand service that will allow subscribers to download films and TV programmes to watch whenever they want.

They are striking back against the runaway success of BSkyB's Sky Plus which lets customers record and store hours of programmes on a set-top box. The satellite giant's service has attracted more than 500,000 subscribers.

NTL's 1.4m TV subscribers will be able to fast-forward and rewind programmes - as if they were playing a DVD - for up to 24 hours after they have paid for a download. Sony and Disney are on board to provide films, which will cost no more than hiring from a rental shop.

The service will launch initially in Glasgow, where NTL first tested out digital television, before being rolled out to all of its regions. NTL is working in tandem with Telewest, its long-touted merger partner, which will begin trials in Bristol next week. A personal video recorder, similar to Sky Plus, will follow by the end of the year.

Video-on-demand technology has long been talked about but slow to take off. Faster internet speeds and cheaper set-top boxes mean broadcasters and telecoms companies are racing to offer new services that they hope will boost subscriber income and loyalty.

Only Kingston Communications in Hull and Video Networks in London offer video-on-demand so far. Kingston is looking for a new supplier for its 5,000 customers after video chain Blockbuster ended their partnership last week.

BT is working on a service for its broadband customers to download TV shows. It is still in talks with programme providers such as the BBC and Channel 4.