Satellite broadcaster BSkyB looks set to miss its important internal target of subscribing 10m customers by 2010, as growth in the pay-TV sector begins to slow.
In fiscal 2007, Sky signed 406,000 new customers to its satellite service, and needs to add a further 400,000 each year to meet its goal in 2010.
It is expected to announce in results at the end of July that growth in the last 12 months has slowed. The firm is thought to have signed between 380,000 and 390,000 new customers in fiscal 2008.
Unless Sky can boost its customer base at a faster rate, its crucial 10m target will be difficult to reach, especially as the economic climate makes subscribing new consumers increasingly difficult.
According to Fiona OrfordWilliams, analyst at Edison Analysis, increased competition from internet television and services like Freesat will also make it hard for Sky to grow at its current rate.
“The original driver for Sky was that it offered choice but with the range of products now available, that’s a much less compelling argument. I think it’s quite likely that they’ll miss their internal targets,” she said.
“Sky has consistently over delivered on market expectations of pay TV growth over many years. We see substantial opportunity for further growth through 2010 and beyond,” a Sky spokesman said.