A BT spokesperson told Computer Business Review that Andrew Burke is leaving the company by mutual consent to pursue other interests.

There has been speculation in the press that Mr Burke had clashed with senior BT management. The Financial Times quoted an analyst who knows Mr Burke. He said Mr Burke had become increasingly unpopular and had run into opposition from Ian Livingston, chief executive of BT Retail. However, BT told Computer Business Review that the decision was entirely amicable and that Mr Burke would be leaving at the end of April.

Mr Burke was a long-standing veteran of BT’s online activities, and he was appointed chief executive of BT Entertainment when the content division was established in November 2004. BT said he will not be replaced and it is thought his responsibilities will be split among the management team.

Mr Burke oversaw the signing of a number of content deals for BT Vision, which should start trials in the UK sometime in the spring. It is thought that BT Vision will be free of charge to BT broadband customers who will be able to pick from a catalogue of films, music, and television programming, as well as interactive and communications services, all via their television sets. There will also be a pay-per-view option.

Customers who sign up to the service should get a set-top box that incorporates a Freeview digital receiver, as well as a personal video recorder (PVR). The PVR is increasingly being viewed as the modern-day VCR because it enables users to pause and rewind live television, and record up to 80 hours of programming. The uptake of these machines could have adverse financial implications for commercial broadcasters because users often use the PVR to skip ads, their main source of income.

BT has signed a deal with Philips to supply the set-top box. It also has an alliance with Microsoft, which will provide Microsoft TV IPTV Edition as the software platform.

BT is hoping to capitalize on the demand for home entertainment, and its solution gives householders the ability to pick and choose their viewing without the monthly subscriptions for alternative services provided by UK satellite broadcaster, BSkyB, and UK cable giant NTL, which has just moved into the quad-play market with its acquisition of Virgin Mobile.

BSkyB recently launched its IPTV service known as Sky By Broadband, available at no extra charge to existing Sky digital customers. Customers are able to download DVD-quality movies and sports highlights directly to their PC. The BBC is also currently trialing a similar system.