BSkyB Could Miss 10m Subscribers Target

BSkyB is set to miss its target of 10 million subscribers by 2010, according to an analyst’s report published today.

The Collins Stewart report says that subscriber growth will stall, leaving BSkyB with 9.4 million subscribers by the end of 2010.

It said: “We believe BSkyB faces greater threats to its business model than ever before. Recession, technology shift and regulation could together combine to make the perfect storm.

“By then [2010] the UK may be mid-recession, Ofcom should conclude its potentially damaging pay-TV review and BSkyB will be riding the uncertainty of the next Premier League rights auction.”

A separate report published earlier this week found that nearly a quarter of pay-TV customers in Britain are considering cutting back or getting rid of their subscription packages (see Britons Could Cut Back On Pay-TV Services).

The Collins Stewart report also downgraded forecasts of BSkyB earnings in 2010 by 30%.

Collins Stewart: www.collins-stewart.com