BBC Worldwide, the commercial arm of the BBC, Warner Music, the music major, and Paramount, the Viacom-owned film studio, will supply television, music and films for viewing and listening down phone lines.

Dan Marks, chief executive of BT television services, said that the three providers signed up were illustrative of what was to come and that there would be “many more announcements over the coming weeks and months”. He said that BT would sign up “the right number of Hollywood studios” as well bringing on board other broadcasters and “all the major record labels”. BT will share revenue from every item bought by consumers.

The BT service, to be launched next autumn, allows consumers to choose television, music and films to watch at their convenience. Broadcast television will also be supplied via a Freeview box, which offers 30 channels. The package is designed to help the company to compete with its pay-television rivals NTL and BSkyB, which are encroaching on its turf.

BSkyB, which is 37.2 per cent owned by News Corporation, parent company of The Times, has announced plans to buy the broadband provider Easynet for £211 million, and it emerged this week that NTL had made a bid approach to Virgin Mobile, which was rejected last night.

BT plans to offer two ways to buy, but has yet to release any pricing information. Consumers can either purchase a one-off chance to watch or listen, or buy a subscription for unlimited use.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax