BSkyB has announced that it has hit its target of seven million pay-TV subscribers three months earlier than foreseen.
On the fifth anniversary of the Sky Digital service, Rupert Murdoch’s satellite broadcaster said that as of September 30 it has 7,015,000 subscribers in the UK and Ireland. This is regarded as a significant accomplishment given that it had set the end of the year as the target date for reaching its goal.
BSkyB’s success was built on the risky strategy of giving set-top boxes to customers for free. By the mid-point of 2000, there were more than 3.5 million Sky Digital homes and this number has practically doubled since. BSkyB ably saw off the challenge of ITV Digital and succeeded in converting its entire subscriber base to the digital platform.
“When we set the seven million target over three years ago it was way ahead of market expectations,” said BSkyB chief executive Tony Ball. “Reaching the milestone three months early is a fantastic achievement for the company and I congratulate the excellent team that has made the switch to digital.”
The company is determined not to rest on its laurels and aims to reach eight million DTH subscribers by the end of 2005 and to increase average revenue per user (ARPU) from £366 to more than £400.
In the more immediate future, BSkyB needs to appoint a successor to Ball, who announced last week that he is to step down after four years in charge.
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