BSkyB Expected To Announce Lowest Subscription Figures For A Decade

BSkyB is expected to announce its lowest subscription figures for a decade this month after just 250,000 new customers signed up to its broadband services.

According to Uswitch.com, industry insiders have hinted Sky’s churn rate – the rate at which its customers are leaving the provider – to be as high as 15%, compared with 11.9% in the previous quarter and 11.4% in the same period in 2006.

The company’s See, Speak and Surf bundle has faced increasing competition in recent weeks with Virgin Media and BT both offering similar bundled packages.

Sky’s problems were compounded by the fact that its broadband initiative has turned out to be unexpectedly more expensive than previously thought, with operating losses estimated at about £45 million.

Virgin Media last week also announced that it is taking BSkyB to court after accusing it of stifling competition and abusing its position as a market leader (see Virgin Media Submits Sky Complaints To High Court).

BSkyB’s financial results for the nine months ending 31 March 2007 are to be released on Wednesday, with NewsLine and Insight providing full coverage.

BSkyB: 020 7705 3000 www.sky.com