(BSkyB Annual Report, 2001) Both ITV Digital and Sky Digital can also be received in certain regions via cable provided by NTL in the UK. (Bulkley, 2001) The fierce competitive nature of the industry is illustrated in Porter's Five Forces in Appendix 2. .
At present, 35% of television subscribers in the UK have access to digital services. This means approximately 8.5 million domestic and commercial users, of which Sky hold 68% of the subscribers, while ITV Digital hold 12%. (Reed, 2001) 10 million homes in the UK receive Sky Digital channels. (BSkyB AGM, 2001) Viewing figures of ITV Digital are inaccessible due to limited secondary research. The company has not been forthcoming in revealing this information. For an evaluation of customers and purchasing behaviour see Appendix 3. .
The Cultural Secretary Tessa Jowell states that the British Government aspires to be the first entirely digitally integrated nation between 2006 and 2010. (Brech, 2001) Labour has planned to switch off the analogue signal only if 95% of the population has digital television. (O'Connor & Newman, 2001) A PEST analysis has been undertaken to outline external drivers of change cited in Appendix 4.
FT.com (2001) states that Sky Digital's market capitalisation is strong in comparison with the industry average and is the market leader. According to Kate Bulkley (2001) "OnDigital recently re-branded ITV Digital and using a knitted monkey in a sweater as a front man - is nowhere near breakeven-. This illustrates ITV Digital's currently weak financial position is due to falling advertising revenues and vast technological investments. (Anon.5, 2001) Located in Appendix 5 is a SWOT synopsis of ITV Digital and Sky Digital.
Due to the Government's planned analogue switch-off, the digital broadcasters are currently pursuing new subscribers and this is reflected in their objectives. ITV Digital has 1.1 million subscribers (Bulkley, 2001), whilst Sky Digital has 5.
