Analysts Expect Sky Will Miss 2010 Sub Target

LONDON, October 23: A new
report from the Collins Stewart investment banking group projects that British
satellite platform BSkyB will fall short of its 10 million subscriber target
for 2010.

The platform currently has
some 8.9 million customers and had previously stated it was on track to reach
10 million by next year. The Collins Stewart report, cited in the Guardian, indicates that growth for the platform will stall
in the current economic climate, with an anticipated shortfall of about 600,000
customers.

"We believe BSkyB
faces greater threats to its business model than ever before," the report
says. "Recession, technology shift and regulation could together combine
to make the perfect storm."

The report continues:
"By [2010] the U.K. may be mid-recession, Ofcom should conclude its
potentially damaging pay-TV review and BSkyB will be riding the uncertainty of
the next Premier League rights auction.”

Sky may have to spend some
£1.3 billion to renew its lucrative Premier League rights, while Ofcom is
investigating the platform’s hold on sports and Hollywood movies.

—By Mansha Daswani