Movie costs at UK satellite broadcaster BSkyB rose 17% to $421m (£278m) in the year ending June 30 2000, the company announced on Wednesday as part of its annual results.

BSkyB's total programming costs came in at $1.43bn (£946m), with sports costs representing 41%. The company, 37.5% owned by Rupert Murdoch's News Corp, cited an increase in the number of films offered as a factor in the $60m (£40m) rise in movie costs.

BSkyB also confirmed it will stop offering its analogue service in June next year, a year and a half earlier than expected. Almost 80% of BSkyB subscribers are taking the digital service launched in October 1998.

The company added that it had secured a record of more than one million subscribers in 12 months. In total, it has 3.6m digital subscribers and 930,000 analogue for a total of approximately 4.5m. BSkyB aims to secure 5m subscribers by the end of the year.

The record subscriber growth meant that subscriber acquisitions costs rose, impacting on operating profit before exceptional items, which was down 54% to $129m (£85m). Marketing costs rocketed 77% to $578m (£381m), mainly due to promoting free set-top boxes. Pre-tax loss was in line with expectations at $399m (£263m) on turnover up 20% to $2.8bn (£1.85bn).