Sky Digital, the satellite platform operated by the British television firm BSkyB, signed up an extra 8,000 customers in the three months to the end of June.
The satellite service now has 363,000 subscribers and is the largest pay television provider in the Republic.
However, it could lose its top position if the cable firm UGC is allowed to buy NTL Ireland and merge it with its other cable firm in the Republic, Chorus.
UGC is waiting to hear from the Competition Authority if its purchase of NTL Ireland will be allowed under competition law. If approved, the combined cable firm would have 550,000 users.
In a statement, BSkyB said yesterday that 27 per cent of all Irish households now subscribe to Sky Digital. Sky's portfolio of channels, which include Sky One, Sky Movies and Sky Sports, are also available in households that receive television through cable.
Mark Deering, director of Sky Ireland, said the firm would continue to innovate in the Republic by launching high-definition television services in 2006.
High-definition television is high-resolution digital television combined with digital surround sound. It provides much better picture quality than ordinary television sets.
Meanwhile, Sky Ireland's parent, BSkyB, said its full-year revenue and profits climbed strongly as it added 83,000 subscribers across Britain and Ireland during the quarter.
The company said profit after tax in the year to June 30th increased 32 per cent to £425 million (€613 million), with revenue up 11 per cent at £4.05 billion.
Growth was spearheaded by the addition of 118,000 customers to its Sky+ premium service in the quarter, putting the package in 888,000 homes, up from 397,000 a year ago. Sky+ is an advanced digital set-top box developed by BSkyB which enables consumers to record television programmes and freeze live television shows.
The fourth-quarter subscriber gain took Sky's total subscribers to 7.8 million, up 432,000 from a year ago. The company said it was on track to meet its target of eight million subscribers by the end of 2005. - (Additional reporting, Reuters)
