BSkyB, the UK's leading pay-television group, beat earnings forecasts for the first half as it signed up more subscribers than expected and the rate of customer churn declined.
In the six months to December 31 pre-tax earnings rose 14% to £390m ($693m), well ahead of market expectations of about £275m, as revenues increased by 9% to £2.14bn (just under $3bn).
James Murdoch seems to be doing a good job at Sky. And their strategy of using the pay-TV service as a content hub to then allow their subscribers to access their free Internet movies and mobile phone channels could help them continue to keep churn rates down.
But the competitive environment is hotting up for Sky as a beefed up NTL with a powerful triple play comes at them and as BT launches video-on-demand this year. James Murdoch's real test may be 2006 and 2007.
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