Broadband boost for TalkTalk from the X-Factor

The X-Factor may have missed out on a Christmas number one this year, but TalkTalk believes the hit show it sponsored played a star role in it more than trebling analysts expectations for net new broadband customers in the last three months of 2009.
Figures out yesterday show that the ISP acquired 36,000 net new broadband customers in the period, rather than the 13,000 analysts were predicting. This was achieved despite defections from Tiscali (now owned by TalkTalk) which the ISP claims were “in line with expectations”.
It believes the figures, in an otherwise flat market (due to the country coming out of recession and very little happening in the housing market) are down to the success of its sponsorship of X-Factor and other marketing activity.

Strong growth

It means the ISP is now predicting it will end the first quarter of 2010, at the end of March, at the top end of its predictions, nudging 4.2m subscribers, according to Chief Executive Charles Dunstone.
“TalkTalk Group’s brand profile, value for money proposition, and customer service have continued to generate real momentum in the market, attracting 36,000 net new broadband customers during the quarter and taking the base to 4.15m,” he reports.
“We are now confident that our base at the end of the current financial year will be towards the top of our existing 4.1m to 4.2m guidance range. The Tiscali integration remains well on track to create a highly efficient platform for providing our customers with excellent value and service.”

Starting a new Canvas

However, this integration will not see any further investment in Tiscali’s IPTV platform. Dunstone has suggested it would be ‘foolhardy’ to continue investing in an online platform competing with the major players in entertainment when it could instead join them on Project Canvas.
As such, Dunstone is agreeing with Orange’s pull out of the IPTV market last year but, at the same time, is givng hope to the developing partners of Canvas (BBC, ITV and BT, among others) that TalkTalk will be willing to join the platform and, one would imagine, seek a means to transfer existing Tiscali TV customers on to it.

Tags: BBC, BT, Canvas, Carphone Warehouse, Charles Dunstone, IPTV, ITV, Orange, Project Canvas, TalkTalk, Tiscali, Tiscali TV, X-Factor