BSkyB: a safe refuge in recessionary storm

摘要

Pay-television companies are a good bet for investors in times of economic downturn because they have limited exposure to advertising. Their subscribers stay loyal, valuing pay-television as their main source of entertainment, while they cut other non-essential expenditure. That, at least, has been the received wisdom in the industry and there is evidence to back up the argument that the fortunes of pay-television companies, unlike their free-to-air commercial rivals, are not so much tied to economic cycles. The ups and downs of companies such as BSkyB seem more likely to be related to non-cyclical issues such as products, prices, competition and regulation. According to investment bank Morgan Stanley, BSkyB is "mainly resilient to the cycle", although there could be slower subscriber growth and increased churn if economic conditions worsen.