BT/Excite’s deal with a difference

BT’s recent deal with the UK subsidiary of Excite promises to run on very different lines to business deals outside the Internet industry.

The $10m (6.3m) deal, in which BT picked up half of Excite’s UK business last week, appeared simple enough on the surface – a dominant UK consumer brand and a dominant global online brand together at last.

Both companies have much leverage to gain in promoting a range of interactive services for UK Internet users.

However, BT will continue to partner Excite’s arch-rival Yahoo! in promoting its co-branded Yahoo! Click Internet access to UK consumers, and Excite will continue to co-operate with telecoms and Internet company UUnet in cross-promoting each other’s services.

It will also continue to offer “shareholder value” to Excite UK, according to Dafna Ciechnanover, European developer of marketing and business development for Excite.

The future of BT’s Yell site, the company’s first attempt at establishing a UK-focused directory site, is unclear, says Ciechnanover.

But Excite does expect to be featured as top search engine and Web directory resource in BT’s existing basket of Internet access services. Excite, meanwhile, will continue to feature Scoot over its rival Yell as the preferred online directory to UK businesses.

“It’s characteristic of the sector to see players competing in some areas while co-operating in others,” says Ciechnanover.

“Tactical” deals with Excite’s rivals are allowed under the partnership deal, although “strategic” deals are not allowed, she adds.

Latest from Marketing Week

Tesco, M&S, Just Eat: 5 things that mattered this week and why

m&s

M&S chief outlines digital-first strategy after profits plummet Marks & Spencer (M&S) is gearing up for a digital-first future, after its revealed on Wednesday (23 May) that profits had dropped a massive 62.1% to £66.8m compared to the previous year. A day earlier, the struggling retailer confirmed it will close more than 100 stores over […]

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

If you are looking for our Jobs site, please click here