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.
Share this..
Related stories
US banks hit for six by new government penalty fees
US banking giants have reacted with fury to today's announcement from president Obama that he will be trying to push through a "financial crisis responsibility fee" which could cost some of the US's largest banks as much as $2 billion a year. The proposed fee is intended to ensure that taxpayers in the US are repaid the $117 billion which the US government is expected to lose from the bailout of t...
Read MoreWill Inflation Hit 5% By The End Of September?
As officials get ready to release inflation data for July this week, many experts are forecasting a rise to 4.1% from 3.8% in June. However, while this is bad news in itself it seems inevitable that it will get much worse in the short term. Many economists are looking to inflation to rise above 5% in September as the increase in energy bills only just starts to hit home. This will not only prom...
Read MoreGordon Browns era of public spending is over
There are rumours this weekend that Alistair Darling, the Chancellor of the Exchequer, is demanding at least £15 billion in Whitehall "efficiency cuts". Despite the Labour government attacking the Conservative party for suggestions that public spending should be cut over the next two years, it looks as though the UK government is being forced into a similar move itself.
Alistair D...
Household Water Bills rise 3.5pc
The cost of water and sewerage in the average UK household is set to rise at an inflation-beating rate, by some 3.5pc. This is according to regulator Ofwat, and will see households spend an average of £388 each from April 2013 to March 2014. However it is understood that the increase was not as high as the water companies were aiming for, despite the fact that it beat inflation by half a perce...
Read MoreUK authorities uncover £80 million Ponzi scheme
The UK authorities have uncovered a £80 million Ponzi scheme which has caught out up to 600 people including famous personalities from the world of TV and sport. Made famous by the Bernard Madoff affair in the US, Ponzi schemes are effectively operations which use income from new investors to pay interest and income to existing investors. The schemes can often go unnoticed for many years until th...
Read More