ONdigital has added a further 164,000 subscribers since June, with a record 82,000 signing up during September. The digital terrestrial television broadcaster announced its latest figures today which showed an increase in sales of 66% to 411,000.
The joint venture between Carlton Communications and Granada has had a difficult quarter with a number of high-profile resignations, beginning with the loss of chief executive Stephen Grabiner in July (see ONdigital Hit By Loss Of Chief Executive). Sales however have continued to rise and the group today announced further plans to improve its subscriber base with a pre-paid “plug and play” service.
Launched on 1 November it will cost £119 for a year’s subscription and set-top box. The customer will just take home the box and activate the smartcard to receive the service. It will be available in selected Sainsbury’s stores as well as Comet, Argos, Woolworths and Carphone Warehouse stores.
The deal is expected to hot up the race for subscribers between ONdigital and its rival BSkyB in the run-up to Christmas. It mimics the pre-paid model which has proved so successful for mobile phone companies. Chief executive Stephen Prebble said: “Pre-paid could create a whole new market for set top boxes…This Christmas you will be able to walk into a high street store and, for less then £120, pick up your box, take it home, plug it in, start watching and pay nothing more for a year. No dish. No installation. No unnecessary form filling. No hassle. None of the other platforms can offer such a simple and compelling proposition.”
However, some customers are still experiencing problems with aspects of the service. Of the 411,000 total to the end of September, 38,000 of those who signed up have yet to activate the service. A spokesperson for the group said this can be explained by delays in box delivery, aerial problems or laziness on the part of the customer.
ONdigital’s plans for the next quarter include a new addition to its sports line-up with its purchase of the rights to the German Bundesliga, and a feature-length episode of Emmerdale to premiere on 16 October. Last week the group announced its interactive plans for the millenium which include internet access for all subscribers (see ONdigital Announces TV Internet Plans)
Rival SkyDigital is believed to have 1,500,000 subscribers to its service.
ONdigital: 0171 819 8000
