BSkyB Expresses Confidence In Digital Future

Speaking at ISBA’s Annual Advertising Conference yesterday, BSkyB’s chief operating officer, Richard Freudenstein, claimed that the satellite operator, which currently has 5.7 million digital subscribers, is “on track” to reach its current target of 7 million by the end of next year. He said: “BSkyB’s churn rate is half that of ITV Digital and cable and there is every reason to be confident that our multichannel audience will continue to grow.”

Freudenstein told delegates that digital TV would dominate the media landscape over the next five years, providing unique opportunities for advertisers. He said: “Multichannel TV has already overtaken ITV1 to provide the largest male 16-34 audience and Zenith predicts that pay-TV’s share of ad revenue will increase by 60% over the next few years.”

He dismissed claims that the uptake of digital TV was floundering and said: “The best audiences are migrating fastest. 61% of 16-34 year olds currently have multichannel TV as do 50% of ABC1 adults. More than 100 brands have already run interactive campaigns on Sky and with continued growth expected, digital TV will become an increasingly compelling medium for advertisers and consumers alike.”

In January, Merrill Lynch forecast that BSkyB would lead the way in terms of the number of digital television (DTV) subscriber homes until at least 2010 (see BSkyB Will Lead DTV Market Until 2010, But Cable Growth Is Higher).