Magazine article Marketing

Sector Insight: Pay-TV - Analyst Comment

Magazine article Marketing

Sector Insight: Pay-TV - Analyst Comment

Article excerpt

For the past few years BSkyB has pretty much had a free rein, with the cable industry in disarray and the collapse of ITV Digital. But things are changing and the overall market is looking more competitive.

However, Sky remains a very strong business. I can see it reaching its target of 8m customers by December 2005 and it can get there by targeting high-value customers.

Beyond that, it will be more difficult. Sky chief executive James Murdoch says there are still pockets of demand which can be targeted , such as packages tailored for ethnic communities. But whatever Sky does, it cannot simply offer more of the same.

As Sky heads beyond 8m, I don't expect subscribers and ARPU to increase in a straight line. The mix will change, with a lower proportion of subscribers taking the top package. But I don't expect it to unveil a package for the lower end of the market, as it already has an entry-level option at pounds 13. …

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