Sky off target in battle for viewers

SATELLITE broadcaster BSkyB is believed to have signed up only 20,000 new subscribers in the three months to September, far below the expected 50,000.

The disappointing figures call into question its ambition to reach ten million subscribers by 2010. But while Sky appears to be suffering, its rivals seem to be thriving.

Freeview, the BBC-backed nonsubscription digital TV service, is thought to have added 370,000 users in the period. And cable companies NTL and Telewest are believed to have signed up a total of 155,000.

In the same period last year, BSkyB signed up 170,000 subscribers. In the first quarter of this year, it was 66,000, and in the second quarter, 81,000. BSkyB has 7.4m subscribers and Freeview has 4m, as do the cable companies.

BSkyB refused to comment ahead of a statement in November on subscriber numbers. The company has been under pressure since August, when chief executive James Murdoch, son of chairman Rupert, outlined the company's growth strategy. The City reacted badly to the unexpectedly heavy long-term investment he said was required.

Taking into account the number of subscribers who leave each year, BSkyB must add 430,000 annually to reach its target of 10m within the next six years. Its shares have fallen by nearly a third since the start of the year, ending the week at 484p from a year high of 786p.

The company is believed to have persuaded chief operating officer Richard Freudenstein to stay on for another four years. Freudenstein challenged James Murdoch for the role of chief executive last year.