$1310 a year for top-tier BSkyB package in revamp

LONDON: Top British pay-TV company BSkyB is rolling out a new segmented pricing structure to draw in new customers as it raises the cost of its top-tier package to 510 ($1310) a year.

Sky, facing a challenge from the rapidly growing Freeview platform and renewed competition from its cable rivals, says it will organise its channels into six channel mixes, including music, news, knowledge, and children's programmes.

The company is hoping the new structure will attract new subscribers even though most prices are rising slightly, by offering more choices in the types of programming made available.

The cheapest package, which will include two mixes, will cost 15 per month, and taking all six will cost 21 per month. The broadcaster's premium Sky World package - which includes English premier league football and Sky's movie channels, and is taken by about 50 per cent of subscribers - will increase from 41 to 42.50.

The company's entry-level 13.50 value package will be phased out for new subscribers when the pricing changes take effect on September 1.

BSkyB chief executive James Murdoch is under pressure to deliver new subscribers after unveiling an ambitious growth strategy last year that was poorly received by investors. The company has nearly 8 million subscribers.

- REUTERS