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ITV Digital Reaches 1.26m Subscribers

ITV Digital Reaches 1.26m Subscribers

ITV Digital now has 1.26 million subscribers, having added a further 46,000 during the last quarter of 2001. However, the digital services provider is continuing to look at ways to reduce costs internally, including through job reductions.

Churn for the three months was 24.9%, which ITV Digital claims is within its forecast range, adding that the effect is less costly than for other companies, since unused set-top boxes are recovered and recycled. When rival Sky Digital reported its subscriber figures earlier this month, its churn was only 10.4% and its subscriber total had reached 5.7 million (see BSkyB Growth Beats Expectations).

ITV Digital has said that it is working with the manufacturers of the planned low-cost digital set top boxes (see Pace To Speed Digital Take-Up), as it hopes this could unlock a substantial potential market. In order to control its cost base, it is also to reduce around 600 posts through improved training and technology during the current quarter. These job losses, it said, will occur “almost entirely voluntarily”.

Last year the company had to work hard to quell the fears of shareholders and industry commentators, alarmed at the spiralling costs of the venture (see Zenith Slams ITV Digital). Managing director Rob Fyfe said today that the latest results showed that the aims of steady growth in subscribers and control of cost base were being achieved.

ITV Digital: 0808 100 0101 www.itv-digital.co.uk

Recent Digital TV stories from NewsLine: BBC Unveils New Interactive Service For Kids BSkyB Growth Beats Expectations ITV Digital Restructures Interactive Arm

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