More problems for YouView as BT drops Pace
Editor | 10-12-2012

Adding to years of delays in launch and even a trademark law suit, the latest blow to the YouView project has arrived in the form of BT ending its STB supply deal with Pace.

A founder member of the catch-up and on-demand project along with the BBC, ITV, Channel 4 and Channel 5, BT revealed in September that it had been obliged to acquire additional boxes to meet expected demand after rejecting those provided by Pace, its intended supplier, after judging that the Yorkshire-based company’s products “did not meet BT’s requirements” in spite of an agreement to use them for the YouView launch. At launch, BT revealed that it would offer YouView packages based on boxes made by Humax.

Now, according to a report in the Financial Times, BT has terminated its deal completely with Pace for the YouView project but said that it would still supply Pace technology for its flagship BT Vision IPTV service which it is ramping up steadily with premium content.

The news is yet another blow to Pace which has been engaged in efforts to stabilise itself after losing virtually all of its senior leadership team — CEO, COO and chief financial director — following a calamitous 2011 which saw the company issue a number of profit warnings due to a build-up of inventory ahead of schedule and a higher than planned cash outflow to ensure that it could deliver on customer orders.