BT launched its internet TV service today, offering customers a range of free and paid-for programmes.

The TV service, called BT Vision, has been much anticipated, as it is the first of its kind to offer customers on-demand content, including movies, and sports delivered via broadband. It also gives customers up to 40 freeview channels.

However, it said that many of the add-on services, such as live Premiership games, would not be available until summer next year.

BT Vision includes a pay as you go service, which will allow consumers to watch children’s channels, and TV shows from as little as 49p. An on-demand subscription service with unlimited access to thousands of hours of content will cost £14 per month.

Among the channels signed up to the service are Setanta, which will broadcast 46 live FA Premiership games, 60 live Scottish Premier League games and 242 “near live” matches, from the start of the 2007-08 football season.

A deal with Warner Brother’s will allow consumers to download the latest films to rent or own from £1.99, but again, this will only be available from next year.

The service is only open to BT Total Broadband customers, who will get a V-box - a personal video recorder (PVR) set top box - which can store up to 80 hours of programming. Owners can also pause, rewind and fast forward live TV. 

Although the V-box is free, installation costs £60 and there's an initial connection charge of £30. Next year, BT plans to introduce a self-install version which will waiver the £90 installation charge.