Word: freeviewing
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Some analysts agree. "Revenues are growing faster than costs," notes Morgan Stanley's Sarah Simon. (After-tax profits for the past six months were up 18%.) Still, Murdoch faces increasing competition. A multichannel provider called Freeview has won 5 million customers in Britain in little more than two years, while cable operators NTL and Telewest recently launched video-on-demand services that challenge Sky's movie business. F & C's Hayes notes that a share buyback launched by Sky in November could lead to "creeping control" of Sky by News Corp. That's just the sort of worry that rankled...
...satellite dish to their walls. In many areas historic-preservation laws bar the devices anyway. Add to that a nascent bbc-sponsored "free satellite" movement - in July the bbc made its satellite transmission free to anyone with a satellite receiver - plus a feisty new multichannel TV operation called Freeview (which attracted 1.6 million customers in less than a year), and BSkyB could be looking at much more modest growth. As the subscriber pool diminishes, BSkyB is under increasing pressure to extract more revenue from each user. Yet the percentage of viewers signing up for the pricey $61-per-month premium...
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