BT is to unveil its new internet television service in Britain on December 4th and offer films and TV programmes on demand.
The new service, known as BT Vision, will be delivered over the internet through a set-top box. The BT-branded boxes, which are made by Philips, include a receiver for digital TV and a wireless internet router, and will record up to 80 hours of programming.
The service will not incur a monthly subscription fee; instead, customers will pay only for the programmes and films they watch. Customer will also be to access free-to-air channels already being broadcast in Britain.
A spokesman said there would be a measured rollout of the new service that would pick up momentum in the spring.
BT is making an aggressive move into home entertainment with its Vision offering, which is seen as a challenge to satellite broadcaster Bskyb and cable company NTL.