STOCKS | VodafoneThree Launches TV Service to Expand UK Broadband Market

VodafoneThree will launch its first TV service next month as it seeks to compete with Sky, BT, and Virgin Media O2 through a broader product lineup. According to Sina Finance, the service will bundle streaming platforms such as Netflix and HBO Max and be cross-sold to existing UK customers. The company plans to double its broadband customer base from current levels to more than 4.3 million by 2034. VodafoneThree Chief Executive Max Taylor said the company needs to offer TV products to fixed-broadband customers, while many mobile users also want TV services. The move would bring Vodafone closer to the operating model of domestic rivals that already offer integrated TV, broadband, and mobile services. Industry attempts in TV have had mixed results, with BT Sport launched in 2013 later scaled back because of high costs, while Virgin Media O2's TV base is shrinking by about 4% a year, according to Enders Analysis. Unlike Sky, Vodafone will not produce its own content and will instead partner with platforms that attract viewers moving from linear TV to streaming. James Barford, telecoms director at Enders Analysis, said such bundles appeal to broadband customers who want simplicity and do not want to pay for a full Sky package.