Kiwi consumers have taken to high definition television with such gusto that Sky Television claims it is so far ahead of its sales programme it’s running out of product.

Chief executive John Fellet says the company had projected to sell around 40,000 units of its MySky HDi high definition satellite TV receivers by the end of last year.

But as at December 31, Sky had sold 54,000 – putting it neck and neck with free, state-funded rival Freeview, which boasts sales of just over 52,500.

Mr Fellet says it was the fastest take-up of any sky product ever, and that Sky is well on track to reach the 80,000 first year sales projection, if not exceed it.

Mr Fellet attributes the success of the HD launch to the penetration of HD capable sets, competition with Freeview raising HD awareness and the recession keeping people at home.

First NZ Capital Analyst Sarndra Urlich says if trends stay the same, the figure could easily reach over 100,000 for the full financial year, but is more conservatively picking it to sit at 83,000.

Sky is indeed struggling to meet demand for the product, and the fall in the New Zealand dollar will increase costs slightly.

Mr Fellet told NBR that 90% of HD subscribers had come from the existing satellite base, and those on the waiting list were about 80/20 existing subscribers / outside customers.

The company has diverted resources from other departments to help with installation, but overall the company has placed its priority on upgrading existing customers.

He estimates the supply shortfall has hurt the company’s net gain in subscribers by about 1000-2000 thus far.

Mrs Urlich has revised her subscriber forecast from 777,000 to 783,000.

Sky TV’s half-year result is announced on February 20, and First NZ Capital has revised its net profit after tax (NPAT) forecast to $57 million, up from $51.3 million. It is revising its yearly forecast up $10 million to $100 million on the news.

Unlike Freeview which charges a one-off fee for the box and no subscriber fees, MySky HDi initially drew some resistance for its $599 price tag, plus an added $10 per month extra on top of the existing subscription.

At this stage Sky is playing it safe, and not rushing any of its HD plans ahead of schedule.