sky digital is likely to reach James Murdoch's target of 8 million customers by 2005, according to research from Continental, with an extra 500,000 customers expected to sign up.
Freeview is set to rise to 4.9 million from 3.5 million homes, making it the fastest-growing medium. Jon Beaumont, director at Continental Research, said: "In terms of new growth, it is likely that Sky will actually outperform cable, especially with a concerted fourth quarter marketing push."
Digital TV take-up is expected to reach 15.9 million homes by 2005, an increase of 2.5 million. This figure will count for 66 per cent of all homes. Beaumont added: "However, the launch of FreeSat in October will possibly impact on the Freeview sales, and the general structure and growth of the market."
To receive Sky's FreeSat, customers will require a £160 (E240) one-off payment for installation of a satellite dish and set-top box. The service will comprise more than 100 TV channels and cover 97 per cent of the UK. This compares with a £50 one-off payment for Freeview that has 30 TV channels and 70 per cent coverage.