Rupert Murdoch calms fears of Sky subscriber slowdown

LONDON - Rupert Murdoch, chairman of BSkyB, has said the satellite giant was on target to meet strong first-quarter profits and calmed fears that subscriber growth was slowing down.

Rupert Murdoch calms fears of Sky subscriber slowdown

Speaking at the Goldman Sachs conference yesterday, Murdoch's positive outlook on the future of Sky comes amid speculation that the threat from Freeview and cable operations would take its toll on the company, driving down subscribers and affecting profits.

Murdoch said: "I can not speak in front of the quarterly figures but should assure everybody that there is an appropriate increase.

"We have all the other channels offered by Freeview plus another 200, with sport and long-term movie contracts."

He reiterated that BSkyB would hit its target of 10m subscribers by 2010.

Murdoch also hinted that News Corporation was keen to buy the remaining 65% stake in BSkyB that it does not currently own.

To the joy of Sky's investors, Jacques Nasser, chairman of the renumeration committee, has insisted the company will not be issuing large bonuses to its executives. "Guaranteed bonuses were a thing of the past," he told investors.

Tony Ball, who stepped down as chief executive last year, received an annual bonus of £500,000.

In 2001, BSkyB shareholders reacted angrily to an incentive plan offered to Ball worth more than £7m. Finance director Martin Stewart had also been awarded a scheme worth about half that of Ball's.

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