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BSkyB Bullish On Its Future, Says Merrill Lynch

BSkyB Bullish On Its Future, Says Merrill Lynch

BSkyB reckons that its satellite customer base could ultimately pass ten million, within a UK pay-TV market penetration of 80%, according to analysts at Merrill Lynch.

The broker itself is now forecasting that there will be 8.1 million Sky satellite subscribers by 2010. This is an upgrade on the July forecast, which put Sky at 7.9 million subscribers by 2010 (see BSkyB’s Lead In UK Pay-TV Market Extends – Merrill Lynch Long-Term Forecasts).

Sky believes that advertising will grow by double-digits in its current financial year; Merrill forecasts that they will be 10%. In addition, prices may rise in 2004 following the capture of the European Champions League pay-TV rights.

Merrill also reports that Sky’s Premiership Plus 40-game per-per-view package has already sold 350,000 ‘season tickets’ at the reduced price of £50; last year, at the price of £60, only 250,000 were sold.

Interactive revenues BSkyB is aiming to more than double revenues from interactive services, increasing average revenue per user (ARPU) from the current £14 per year, to £30 by 2005.

Recent interactive successes include five million votes being cast via Sky Digital for Channel 4’s Celebrity Big Brother programme and the sale of downloadable ringtones realising £750,000 in two weeks.

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