BSkyB To Unveil A 70% Drop In Subscriber Figures

BSkyB is expected to unveil a significant fall in subscriber figures later this week, as City analysts predict a 70% year-on-year drop in the number of new digital customers.

Chief executive, James Murdoch, is expected to say that only 50,000 digital subscribers were added during the last quarter, despite a significant increase in spending on advertising which was designed to attract new customers.

As well as the announcement regarding the slump in subscriber rates, one-tenth of the group’s shareholders will vote against controversial share buy-back plans, which would see the company owned by Murdoch’s father, tighten its control over BSkyB.

According to the Times, UK shareholders, including Insight Investment, HBOS, Standard Life and M&G will lead the opposition of the share buyback. However, if BSkyB gets backing from its largest US shareholders, this means the company will get the majority necessary from independent shareholders to move forward with its plans of buying back 5% of its shares to reward investors and boost its share price.

News Corporation, which is controlled by Rupert Murdoch, owns 35% of BSkyB and this stake could automatically creep up to 37% after the buy-back because it does not want to tenders its shares. In Friday’s shareholder meeting, UK-based shareholders are expected to vote against the special resolutions because they are concerned about the rising control by News Corp.

BSkyB: 0207 705 3000: www.sky.com

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