Sky considers free Sky+ strategy

Sky is mulling a plan to offer Sky+ free to all new and existing customers, according to a report in The Independent.

The move, which could cost the company as much as £1 billion over the next three years, is seen as a way of increasing subscriber numbers further towards the 10 million target set for 2010.

The Sky+ service currently costs £99 for the PVR set-top box and, depending on the package taken, a subscription of £10 per month.

"Getting to 10 million homes is more difficult when cable becomes more of a competitive threat," industry analyst Paul Richards told the newspaper. "Sky+ is a superb product. Giving it away would cut the churn rate and be a big plus for adding new customers."

He added: "Having 10 million Sky+ homes [in 2010] is obviously more valuable than 3 million with Sky+. It is a case of short-term pain for long-term gain."