Sky sees broadband growth but slowing pay TV adoption

Sky saw strong growth in broadband customers during the first quarter of 2012 but uptake of its pay TV service slowed, according to Strategy Analytics.

The global analyst firm revealed that Sky added 212,000 broadband subscribers during the three months to March 31st, but only increased its subscription TV customer base by 15,000.

This marked a new low for the satellite broadcaster, with successive quarters generating the slowest pay TV growth in the company's history.

By the end of this year, Strategy Analytics predicts that another 90,000 households will sign up for Sky TV, while 425,000 will subscribe to its broadband service.

Jason Blackwell, director of service provider strategies (SPS) at Strategy Analytics, said Sky is banking on customers choosing its broadband product to deliver new video services such as Now TV.

Set to launch later this year, Now TV will offer instant access to a range of Sky content - including hundreds of movies - via the internet.

Richard Fontes, analyst in the SPS group, commented: "The upcoming summer of sport will provide an opportunity for broadband and pay TV vendors to gain mindshare among consumers.

"In addition, the Olympic Games and European soccer championship should help drive demand for broadband and pay TV services."