Satellite broadcaster BSkyB has revealed narrowed first-quarter losses after spending heavily on sport and films.
It lost £94.8 million, down from £128.9 million a year ago.
BSkyB spent heavily on films, sports and services such as betting and shopping to attract customers.
The company, which is 36 per cent owned by Mr Rupert Murdoch's News Corporation, is fending off competition for viewers from cable companies and ITV Digital.
BSkyB says total subscriber numbers increased by 148,000 in the quarter to 10.1 million.
Its churn rate - the number of people dropping its services - fell to 10.4 per cent.
Sky Sports achieved record audiences for the opening fixtures of the new Premier League season, the company says.
Chief executive Mr Tony Ball says: "We have achieved our goal of becoming a fully digital service.
"Sky continues to attract high-quality subscribers and to deliver strong revenue and profit growth, despite the difficult advertising market."
PA