Murdoch junior needs TV viewers

BSKYB chief executive James Murdoch faces his first major test on Wednesday when he reveals that the rate of growth for new subscribers to the satellite broadcaster has slowed dramatically in the first three months of the year.

Murdoch, the 30-year-old son of BSkyB chairman Rupert Murdoch, will announce third-quarter results that are expected to show about 85,000 new subscribers between January and March this year against 150,000 who signed up to Sky in the same period last year.

Murdoch was controversially appointed to his post last November, replacing Tony Ball, despite an outcry from some shareholders who accused Rupert Murdoch of nepotism.

The company has 7.2 million subscribers and is aiming for eight million by the end of next year. To reach that target, it has to sign up an average of 100,000 new subscribers every quarter. BSkyB did not advertise significantly during the period, unlike last year, and also raised prices.

However, the company is now advertising heavily and the City will be keen to hear from Murdoch how effective this has been in promoting sales in the final quarter of its year.

Investment bank Societe Generale said: 'Initial concerns as to the new chief executive's longerterm strategy have been subsumed by the more pressing need to show that he can meet the medium targets he inherited from his predecessors.'

SG analysts believe that the number of new subscribers will rise in the final quarter of the year to 113,000, which will allow the company to meet its annual target of 566,000 new customers.

However, the bank says the figures do 'not seem an auspicious start for the new chief executive'. It suggests that BSkyB might have to make additional investment in content, marketing and products to win customers.

The company is expected to announce third-quarter revenue of £930 million, up nearly 14%, while profits are expected to be 83% ahead at £128 million. Earnings per share are likely to be 4.4p, up nearly 75%.

Ireland's horse-racing authority, Horse Racing Ireland, is understood to be in negotiations with both the planned new horseracing channels in Britain - the Horse Racing Channel and New Attheraces. Horse Racing Ireland is determined not to split its rights, but to sell them as a single package.

Irish racing would be a big prize for either channel since there are 304 meetings a year at the republic's 27 racecourses.

New Attheraces, with 25 courses signed up, is owned by BSkyB and Arena and will be free-to-air.

Horse Racing Channel, backed by a group of investors led by the general manager of Goodwood racecourse, Rod Fabricius, has 28 tracks and will be a subscription channel.