BSkyB facing growing pressure, says Fitch

UK pay TV operator BSkyB is likely to face growing pressure from internet pay TV services over the next few years, according to ratings agency Fitch.

In a note following Sky’s latest half-year results and the announced launch of a new online TV service, Fitch said that the broadcaster’s numbers, “while fully supportive of its current ratings, highlight the highly competitive nature of the UK market for triple-play packages of television, telephony and broadband services and the increasing pressure we expect the company to face from internet pay TV services in the coming years”.

Referring to Sky’s new internet service, designed to target customers who do not want to sign up for a full pay TV service, Fitch said that “the company will have to balance this potential market against the need to ensure it doesn’t cannibalise its existing customer base”.

While competition from OTT players could lead to pressure on content rights in the long term, Fitch said this was likely to be a slow process.