Broadband boost for BSkyB
By Julian Clover

Falling numbers of new pay-TV subscribers will be compensated for by increasing broadband subscriptions.

Strategy Analytics is forecasting growth of 90,000 additional pay-TV subscribers and 425,000 additional Broadband subscribers by the end of 2012. Some 212,000 broadband subscribers were added in the first three months of the year, compared to just 15,000 pay-TV subs.

According to Strategy Analytics, BSkyB has benefitted from a growing number of subscribers – now the highest in the UK – that bundle services, leading to increasing average revenue per user (ARPU) and strong financial performance.
“Many of the company’s new video products, such as “Now TV,” rely on Broadband for delivery. BSkyB is thus banking on the idea that consumers will choose its Broadband service to provide this connectivity,”

said Jason Blackwell, Director, service provider strategies at Strategy Analytics.

The company says that the combination of the Euro 2012 football championships and the London Olympics will drive demand for broadband and pay-TV services – even if both events are available free-to-air in the UK.