Hull, U.K.-based Kingston Communications will pull the plug on Kingston Interactive TV (KIT) on April 3 because not enough people watch it. Without the benefits of scale and increased competition, the telco does not find further investment in KIT to be cost-effective. Existing customers have been notified of the closing. HomeChoice is now the only operator providing a digital and on-demand TV service over a broadband connection in the U.K.
The service was launched in October 1999, and at one point KIT boasted 10,000 subscribers. The carrier is said to be negotiating with satellite TV provider Sky to take over its dwindling installed based of some 4,000 subscribers. Kingston has spent $17 million to $20 million on KIT over the years, earning no profit. Meanwhile, BT is gearing up aggressively for its nationwide IPTV launch later this year. Cartoon Network has become the latest content provider to sign on to the service.
PLUS: To face the increased competition, the U.K.'s largest satellite broadcaster, British Sky Broadcasting Group (BSkyB), signed a deal with Walt Disney to offer additional Disney content with premium Cinemagic. The content deals indicate "content is the king." Article