News Broadcasting
BSkyB reports colossal profit rise
MUMBAI: The Murdoch owned pay-TV company BSkyB has reported a record operating profit of £438 million – a massive 76 per cent increase on the previous year’s quarterly figures.
According to a media report, the net operating cash inflow increased by 131 per cent to £518 million, while profit after tax increased almost tenfold, from £28 million to £243 million. The network’s total revenue increased by 16 per cent to £2,697 million. Also notable is the fact that the number of DTH subscribers rose by 66,000 to 7.3 million.
BSkyB chief executive James Murdoch was quoted in a media report saying, “Sky continues to deliver improvement in its financial performance, and remains on track to hit all operational and financial targets. Slower DTH subscriber growth during the quarter reflected our decision to pull back on platform marketing in a seasonally quiet period.”
The company also revealed that it would not sell the rights to broadcast six to eight Premier League soccer matches because none of the bids it received reached a price per match agreed upon with regulators.
BSkyB has signed up new pay-television subscribers at the slowest pace in more than two years in its third quarter, but its profit increased anyway because it sold its 20 per cent stake in a home shopping channel to QVC, generating a gain of about £49 million.
Net income jumped to £113 million from £17 million a year earlier, BSkyB said. Sales rose to £931 million from £819 million.
James Murdoch, who became CEO in November, is counting on Sky Plus, which lets users rewind live TV, and on luring more viewers to reach eight million subscribers by the end of 2005.
The company also announced that James had agreed a 12-month rolling contract, seven months after being installed as BSkyB CEO. According to a media report, Murdoch will earn an annual salary of £750,000, plus £200, per year in relocation and other expense allowances for three years. He will also be entitled to a bonus. Murdoch is being granted 450,000 BSkyB shares, though 70 per cent of the entitlement will be subject to performance.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
