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Satellite Round Up

Satellite Round Up

Hailed as the biggest thing to hit the satellite industry since the first Astra satellite launch in 1988 September 1st sees the introduction of ‘Sky Multi-Channels’ – and with it a move away from free viewing to a completely encrypted service.

Much has been published about which channels will be available through the package – with what would appear to be BSkyB misinformation abounding as to which channels viewers will continue to get for free.

The channels which will be part of the package from September 1st – i.e. will be encrypted from that date are as follows:

  • Sky One
  • UK Gold
  • Nickelodeon *
  • Childrens Channel
  • Discovery
  • Bravo
  • Family Channel *
  • Country Music TV
  • UK Living *
  • New channels launching 1/9

All channels apart from those in the MC package, the Sky movie channels and Sky sports will not be encrypted and will remain free of charge.

MTV are set to join the group – but not until 1994, and Nick at Night, VH1, and QVC will not be available until later in 1993 – because they do not launch until October.

PAYMENT FOR SKY MC

  • If viewers currently subscribe to one of Sky’s film channels the cost per month remains unchanged (£11.99).
  • A subscriber to Sky Sports will see some increase in costs from £5.99 to £11.99.
  • At present non premium subscribers are being offered the MC package for £3.99 a month until December 1993, and thereafter will be asked to pay £6.99.

According to GfK research into subscription to pay channels, out this week, they estimate that 81% of households receiving satellite broadcasts direct to home subscribed to at least one or more of the pay channels.

SAT. HMES SUBSCRIBING TO PAY CHANNELS

JUNE 92 DEC 92 JAN 93
ANY CHANNEL 76% 82% 81%
SKY MOV+ 68% 63% 63%
MOVIE CHANNEL 56% 58% 57%
SKY SPORT 55% 57%

Although the reduction in take up of pay channels from December 1992 to March 1993 suggests a slight percentage point fall the absolute number of subscribers has grown. GfK estimate as follows:

SUBSCRIPTION TRENDS (000s)

Jun-92 DEC 92 MARCH 93
ANY PAY CHANNEL 1352 1642 1741

Gfk estimate that there are only around 20% of homes who do not currently subscribe to any pay channel – and obviously these will be most affected by the Sky package.

In terms of the size of the dish market BSkyB has today produced internal estimates of dish sales which suggest that more than 15,000 dishes a week have been sold since the start of July – this contradicts BARB figures out earlier this month, which suggest a total increase from July to August of only 24,000.

An update to the Zenith satellite penetration forecasts to 2003 – out next week will dedicate a whole section to the effect of the encryption on the satellite universe.

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