Is BSkyB Suffering From The Downturn?
While Rupert Murdoch's satellite baby has not always been the darling of the City there is no doubting the management's ability to hit targets on the spot, something which has enhanced their reputation over the years. The move into UK sport and football in particular was a piece of marketing genius and opened many new doors for the group. However, it seems as though even the mighty Sky may be suffering from the prolonged economic downturn with analysts suggesting that subscriber figures may be missed in the short term.
The group itself has not really set itself any formal targets for the short but it is known that they had hoped to have signed up 10 million plus subscribers by the end of 2010. The group had been well on course to reach this target but a mixture of cable competition, increased prices and the economic downturn has seen recent new subscriber numbers under pressure.
Interestingly the group has the option to bump up marketing expenditure and slash prices but they believe that this will cheapen the brand and has the potential to cause longer term problems. Sky+, Sky broadband and other innovative services are still going down well with the UK public but unfortunately the company cannot swim against the sea of the UK economy forever.
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