Sharewatch: Sky Falls Despite Multichannel Success

Pay-television provider BSkyB saw no reprieve for its share price yesterday, as value continued to drop for the satellite superpower following a disappointing performance last week.

The broadcaster’s revelation that it had missed its subscriber target led to a shareholder revolt and anger from many investors. The company’s share price has rarely peaked into positive growth since, and clearly has much making up to do (see Sky Profits Rocket Despite Slowing Subscriber Rates).

However, research released yesterday by Ofcom shows that the increasing popularity of digital television is having a negative impact on the UK’s main terrestrial channels, with ITV1 seeing its share of viewing decline by 16% in less than ten years and BBC One dipping by 7% during the same period (see Multi-Channel Success Hits Terrestrial Broadcasters).

However, the news of decreased viewing share failed to upset ITV‘s investors and the UK’s largest broadcaster saw a rise of 1.81% to close at 98˝p. Last week ITV unveiled the third key appointment to its advertiser relationships team as part of an ongoing attempt to improve its image by becoming more customer-centric (see ITV Sales Recruits Third Agency Account Director).

Elsewhere, magazine and radio giant Emap enjoyed a rise yesterday of 0.68%, despite its fledgling Zoo magazine losing out to rival IPC’s Nuts in the latest consumer ABC results for the six months to June 2004 (see ABC Results Jan-Jun 2004: Men’s Weeklies Make Their Mark).

The FTSE 100 seesawed yesterday, falling from mid-day highs to close up just 0.4% at 4,328.1. The FTSE 250 also close up, rising by 0.2% at 5,869.7.

The closing prices of media company shares on Thursday were: