BSkyB profits surge but rivals challenge
Wednesday 01 February 2012
BSkyB yesterday underlined its financial strength with a 28 per cent surge in profits, but the pay-TV giant is facing growing pressure on subscriber numbers because of the economy and internet rivals.
Sky added just 40,000 new TV subscribers in the three months to December against 140,000 a year earlier.
Customers signing up for broadband, home phone and high-definition TV were all lower too. Sky sold a net 772,000 products to new and existing subscribers against 1.06 million.
Revenues rose 6 per cent in the last six months to £3.36bn because of a price freeze in August.
But pre-tax profits jumped to £597m, thanks to improved margins.
However, in a sign of how Sky may fear online rivals such as Netflix and LoveFilm, the chief executive, Jeremy Darroch, announced a new, cut-price internet-only TV service.
Viewers will now be able to watch Sky's movies and TV shows online or via a games console on a pay-per-programme or monthly basis, instead of signing up as subscribers.
Sky has not unveiled prices, but Netflix costs £5.99 a month.
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Florida couple forced to register as sex offenders for having sex on public beach
Who should I vote for in the general election? Take The Independent's interactive quiz to find out which party is the right choice for you
General election: Conservatives mocked online over Boris Johnson's claim of SNP 'jockalypse'
- 4 #JeSuisEd: People share photos of themselves eating awkwardly in solidarity with Labour leader
- 5 Women think Irish men are the sexiest, survey finds
£35000 - £40000 per annum + car and benefits: Ashdown Group: Marketing Manager...
£30 - 35k: Guru Careers: A Senior Account Manager / SAM is needed to join the ...
£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...
£20 - 25k + Bonus: Guru Careers: Are you a Recruitment Consultant looking to m...