Satellite broadcaster, BSkyB, reported along with third quarter results that subscriber growth didn’t meet expectations, as it slowed to 66,000 net new subscribers over the period.
This is below the average of 100,000 a quarter needed if Sky is to meet its target of eight million direct to home (DTH) subscribers by the end of 2005. Sky says that this reflects the company’s decision to pull back on marketing while it assess the Christmas marketing push.
Chief executive, James Murdoch, son of media baron Rupert Murdoch, said: “Following only minimal above the line marketing during the quarter, a new campaign was launched on the 26th March 2004, the benefits of which will begin to be felt during the fourth quarter.”
Sky+ customers continued to grow strongly, increasing by 72,000 in the quarter to 322,000, achieving Sky’s initial target of 315,000 Sky+ customers three months early. The statement says that Sky+ continues to penetrate the existing subscriber base as well as driving new subscribers to Sky. Since 1 October 2003, 16% of Sky+ customers were new to Sky digital.
Audience figures continued to grow says the statements. Multichannel television continued to take viewing share from the main terrestrial channels, BBC1 and ITV1 as total audience increased by 6% on the same quarter last year.
The number of subscribers with more than one Sky+ digital box in their home, increased to 270,000 this quarter, almost double on the same period last year. With almost three television sets in every Sky digital home, growth of multi-room subscription penetration represents a significant long-term opportunity says Sky.
Direct to home churn – the proportion of subscribers that left during the first quarter, was 9.4%, the same as the second half of 2003 despite there being a price rise during this quarter.
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