BSkyB ups budget in attempt to lure digital switchovers

BSkyB is increasing its entertainment budget by £10 million over the next year as it plans a steady increase of funding to particular channels.

The broadcaster is focusing heavily on its entertainment channels Sky Two, Sky Three and Sky Real Lives by implementing a seven per cent year-on-year increase for the channels.

The budget increase will bring spending up from £150 million to £160 million by the end of the year.

Currently, it is estimated that BSkyB already spends three times as much on entertainment than it does on news coverage, with news accounting for just an estimated £55 million.

Explaining the reasons behind BSkyB's funding hike, chief executive Jeremy Darroch said: "The fundamental reason why consumers upgrade to pay TV is to enjoy a better choice of content.

"No one is better placed than us to persuade free-to-air homes to make that switch. That is why we continue to invest in and build on our core proposition as the home of content people love."

So far only 11 per cent of Sky customers took up the company's bundle package, which offers TV, phone and broadband services, and there are still 14 million homes in the UK without subscription services.

However, Mr Darroch remains positive: "The outlook is more challenging than it has been for some time [but] TV is a very enduring product, people are watching as much today as 10 years ago."

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