Sky On Track To Reach 8 Million Homes By 2005

Freeview will continue as the fastest growing multi-channel platform until the end of next year, but this will not be enough to knock Sky from the top-spot as the most dominant force in the market, according to a new study.

Continental Research’s Autumn 2004 Digital TV Report claims that Freeview will attract a further 1.4 million customers over the next twelve months, bringing its base to just under 5 million. Meanwhile, Sky is expected to reach its target of 8 million subscribers set by chief executive James Murdoch earlier this year.

The popularity of personal-video-recorders is also expected to take off with Continental Research predicting that 525,000 homes will purchase PVR technology in the next 12 months. This could have serious repercussions for advertisers with the ability to skip through commercial breaks proving particularly problematic (see PVRs Could Transform Media Planning Process).

Rupert Murdoch wants to see 10 million Sky customers by the end of the decade, with 25% of them subscribing to the Sky Plus personal-video-recording service. Once again, it looks like Murdoch’s dreams are within reach, as already there are 450,000 UK homes with a PVR, 400,000 of which have Sky Plus.

Continental Research claims that the overall potential for digital television penetration will grow from 45% of all homes in 2003 to around 66% (15.9 million) over the next few years, leaving the market some way to go to reach the 95% target set by the government for analogue switch-off.

The report also said that digital television viewers are more positive about advertising, with new and creative commercials appealing more to them than terrestrial viewers. Around 43% of 16-24 year olds have interacted with a television ad in the past year and this growth is expected to continue.

Continental Research: 020 7490 5944 www.continentalresearch.com

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