Phorm denies BT and Virgin are bailing out

 

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By Barry Collins

Posted on 22 Apr 2009 at 11:42

Behavioural advertising firm Phorm has denied reports that BT and Virgin Media are preparing to ditch the controversy-strewn service.

A report in New Media Age claims Virgin Media is on the verge of signing a deal with Phorm rival, Audience Science.

It also quotes an unnamed source from within BT, who suggests the broadband provider may also step away from Phorm if more websites follow the example of Amazon and Wikipedia, and prevent Phorm from tracking visitors to their websites. "Amazon is one of the top ten sites in the UK," the BT source is quoted as saying. "If 50-60% of the top 20 sites decide to abandon Phorm, I think everyone can guess what will happen."

Phorm denies its ISP partners are getting cold feet. "There is no substance to today's New Media Age story," the company claims in a statement.

"Over the last year there have been continuous attempts to create the illusion that Phorm's ISP partners are parting ways with the company. This is yet another example of such a story, which has no basis in fact."

However, a BT spokesman declined to comment on the New Media Age report.

A spokesman for Virgin Media confirmed the company is in discussion with a number of behavioural advertising services, but denied its relationship with Phorm has been compromised. "The only agreement we have in place is with Phorm," a Virgin spokesman said.

"We are investigating the use of Phorm's technology under our existing agreement with the company but, due to the complexities of the proposition, we do not have any timescales on when, or if, we will progress to trial or launch."

The spokesman added that Virgin Media's CEO Neil Berkett had previously stated that the company's first foray into behavioural advertising is unlikely to be with Phorm.

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