NTL follows up losses with subscriptions hike

UK cable operator NTL is increasing the cost of its basic subscription package by £5 after reporting losses of £2.1bn for the year 2000.

LONDON (Brand Republic) - UK cable operator NTL is increasing the cost of its basic subscription package by £5 after reporting losses of £2.1bn for the year 2000.

NTL, which has 600,000 digital subscribers, is increasing the cost of a monthly digital subscription to £15 from May in a bid to meet its earnings targets of £385m for 2001.

It says it wants to meet its target by boosting the average amount it obtains from each subscriber, called Arpu. It believes it can reach its 2001 target with as few as 100,000 new subscribers.

Barclay Knapp, NTL chief executive, said, “Our immediate goal is to drive the majority of revenue growth from Arpu increases rather than adding new customers.”

The company also announced plans to launch a business broadband internet access service which it claims will cost half as much as rival BT’s broadband offering.

At the end of last year, NTL had 530,700 digital TV subscribers and 12,800 broadband internet customers. It aims to increase these figures to 1.25m and 100,000 respectively by the end of 2001.



You have

[DAYS_LEFT] Days left

of your free trial

Subscribe now

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Share

1 Meet the new breed of ad agency chiefs

A new wave of first-time CEOs are opting to do things differently in an evolving landscape. They discuss the business model of the future with Jeremy Lee.

Case study: How 'This girl can' got 1.6 million women exercising
Shares0
Share

1 Case study: How 'This girl can' got 1.6 million women exercising

"This girl can" was based on a powerful insight: that the fear of judgement by others is the primary barrier holding women back from participating in sport.

Just published

More