01 July 1998

BSkyB promptly trumped ONdigital's launch plans with news of its own promotional double whammy. Sky's announcement that it planned a £60 million marketing investment in its new 200-channel digital service, plus up to £480m on free installation of satellite dishes, had City analysts soiling their underwear over the likely effect on profit margins in the short term. This manifestation of myopia caused BSkyB shares to slump 9% to 432p. In one pithy sentence Sky's chief executive Mark Booth summed-up the difference between those who make money by innovation and creation, and those who make money by playing with it: 'I hope it costs us a ton of money - that means we get a ton of subscribers.'