Is BSkyB paying too much to attract customers? - SatChat ™ Satellite & Entertainment Forum

Olongoer · 09-07-2009, 06:02 AM

BSkyB is said to be paying a lot to attract customers to its HD service. Its latest figures say that BSkyB is spending £306, up from £250, or customer acquisition.

vanreek · 09-07-2009, 06:31 AM

That’s a significant increase in costs. Has it been worth it so far?

cockroach · 09-07-2009, 06:45 AM

Quote:

Originally Posted by vanreek

That’s a significant increase in costs. Has it been worth it so far?

Oh yes. According to one news item I have read, BSkyB was able to gain 124,000 new subscribers in the past three months. Thanks to a high volume DM campaign to promote its HD service.

TheGENERAL · 09-07-2009, 07:28 AM

BSkyB’s spending behavior for the sake of promotion and with the main goal of getting new subscribers has raised eyebrows. A few have questioned the long-term viability of BSkyB’s strategy – which involves adding new customers for a higher cost per customer..

KrisyaKeno · 09-07-2009, 08:09 AM

It’s not a surprise that data strategists have doubts. Apparently, it takes around 18 months for companies to recoup the extra money from each customer.

Topher · 09-07-2009, 09:11 AM

I think it’s a rather unwise decision for BSkyB to be spending all that money. Given the financial conditions now, companies ought to be doing everything in their capacities to limit costs and run things tightly.

Beamer · 09-07-2009, 09:48 AM

Quote:

Originally Posted by Topher

I think it’s a rather unwise decision for BSkyB to be spending all that money. Given the financial conditions now, companies ought to be doing everything in their capacities to limit costs and run things tightly.

Exactly. In the current financial climate, companies should be doing everything in their powers to rein in their expenses. Competition may be really tight and they may need to do everything to get to the top spot, but they also need to be realistic.

eMo · 09-07-2009, 12:13 PM

But there is a growing number of stay-at-home people or potential Pay-TV subscribers, and it’s understandable if BSkyB feels the pressure to get to them first. Besides I heard that they have made certain promises to the City regarding the results they will be turning over. One indicator would be the number of new customers they acquire.

09-07-2009, 06:02 AM	#1 (permalink)
Olongoer Senior Member Join Date: Dec 2008 Posts: 303	Is BSkyB paying too much to attract customers? BSkyB is said to be paying a lot to attract customers to its HD service. Its latest figures say that BSkyB is spending £306, up from £250, or customer acquisition.

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09-07-2009, 06:31 AM	#2 (permalink)
vanreek Senior Member Join Date: Nov 2008 Posts: 430	That’s a significant increase in costs. Has it been worth it so far?

09-07-2009, 07:28 AM	#4 (permalink)
TheGENERAL Senior Member Join Date: Dec 2008 Posts: 355	BSkyB’s spending behavior for the sake of promotion and with the main goal of getting new subscribers has raised eyebrows. A few have questioned the long-term viability of BSkyB’s strategy – which involves adding new customers for a higher cost per customer..

09-07-2009, 08:09 AM	#5 (permalink)
KrisyaKeno Senior Member Join Date: Dec 2008 Posts: 389	It’s not a surprise that data strategists have doubts. Apparently, it takes around 18 months for companies to recoup the extra money from each customer.

09-07-2009, 09:11 AM	#6 (permalink)
Topher Senior Member Join Date: Dec 2008 Posts: 412	I think it’s a rather unwise decision for BSkyB to be spending all that money. Given the financial conditions now, companies ought to be doing everything in their capacities to limit costs and run things tightly.

09-07-2009, 12:13 PM	#8 (permalink)
eMo Senior Member Join Date: Nov 2008 Posts: 445	But there is a growing number of stay-at-home people or potential Pay-TV subscribers, and it’s understandable if BSkyB feels the pressure to get to them first. Besides I heard that they have made certain promises to the City regarding the results they will be turning over. One indicator would be the number of new customers they acquire.