Virgin Media are about to launch a new VOD service, which Virgin claims “will do for TV what the iPhone has done for mobiles”, with web partners that include YouTube, Twitter and Facebook.

This new service, that Virgin Media claims is a “game changing” combination of TV, VOD and internet services, will to begin with be released to Virgin Media’s 3.7 million existing customer base. Registrations for new customers are being taken with installation in the new year. It will cost Virgin Media customers £26.50 a month.

The new service will launch in half way through December giving it a minimum six month headstart of its main rival YouView. Virgin Media attempted to block YouView after the two parties failed to reach a partnership agreement.

Virgin Media’s TiVo powered service will offer 4,600 hours of TV shows and films; catchup TV from the BBC, ITV, Channel 4 and Channel 5; a recommendation and personalisation engine; and access to partner websites. Viewers will also be able to access internet services from brands including YouTube and eBay at launch.

Cindy Rose, the exec of digital entertainment at Virgin Media, said the company is talking to “all the household names you’d expect”. Also a Facebook photos app will be available at the launch, with discussions ongoing that will bring other services provided by the social networking giant onto the new Virgin Media VOD offering.

“Over time we will open it to the developer community similar to what Apple did with the App Store. I predict it will get populated with hundreds of apps,” said Rose.

“Given its shareholders I’m expecting YouView to be targeted at Freeview households looking for a little bit more. We don’t expect premium pay channels to be provided so users wanting that content will have to turn to pay providers,” Rose added.

Virgin Media’s new TiVo set top boxes will be marketed at £199, a pricing level many observers believe that YouView will also adopt for its hardware. A major marketing campaign is planned to launch at some point in the first half of next year.

YouView, a joint venture between the BBC, ITV, Channel 4, TalkTalk, BT, Arqiva and Channel 5, plans to launch by the end of June 2011, although executives have admitted that this may slip. Kip Meek, the YouView chairman, has described the platform as a “balance against pay-TV platforms”.

In October BSkyB also launched an upgrade to their VOD service, Sky Anytime Plus, the new service gives access to thousands of hours of TV and more than 600 films.

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