Interview: Jeremy Darroch, chief executive of BSkyB

Jeremy Darroch is a man with a lot on his plate, ranging from the array of technological developments in broadcasting to the possibility of a takeover. Then there are the seemingly endless battles with the regulators.

But the chief executive of BSkyB insists he is focused on what the customer wants: "We have done well and are continuing to do well because we have retained a very single-minded focus on our customers."

He is currently in Scotland on one of his regular tours of operations and is due to speak tonight at the Premier Dinner Series hosted by the Edinburgh Chamber of Commerce, where he plans to extol the role of business in creating some economic impetus through lingering financial austerity.

Darroch's visit provides him with an opportunity to respond to BBC director-general Mark Thompson's attack on Sky at the Edinburgh International Television Festival. Thompson hit out at Sky's heavy spending on sport and Hollywood movies at the expense of home-grown programmes, which are expected to account for less than 6 per cent - about 100 million - of this year's content budget at Sky.

However, tonight's guests should not expect Darroch to rebut Thompson's assertions. The Edinburgh engagement has been a long-standing date in the diary, and the company insists Darroch will steer clear of any showdown with the BBC's boss.

Sky is one of Scotland's largest private-sector employers, with many of its 7,000 staff north of the Border working from its main centres in Dunfermline, Livingston and Uddingston. Some of the broadcaster's corporate finance and human relations functions are also run out of Scotland, while an extensive engineering workforce is deployed across the country.

In July, the company unveiled a blockbuster set of year-end results as new customers swarmed in, attracted particularly by the company's growing HD service. Annual pre-tax profits jumped 160 per cent to 1.17 billion on turnover of nearly 6bn.

This led to speculation that News Corporation, the media empire owned by Rupert Murdoch, would be forced to raise its indicative 7-per-share offer for the 60.9 per cent of Sky which it does not already own.

Sky's independent directors rejected this first tentative approach in June, noting that it was not a formal offer and claiming it undervalued the business.

The proposal, which is subject to financial pre-conditions, is currently being mulled over by European competition regulators. No decision is expected until early next year.

Darroch says he strives to ensure Sky doesn't let its "head get turned too quickly" by such developments.He refuses to be drawn on whether the group has a long-term future in its current ownership structure, saying that is a question for "if and when" News Corp tables a firm offer.

"As and when European regulators complete that review, I would expect News Corp would come back with a bid, which we would consider at that time," he says. "Those things will be for the future - not for now."

He is far more forthright with his opinions on Ofcom, the UK media watchdog, which he claims is attempting to "shape a market in their own view".

Earlier this year, Sky was ordered to lower the wholesale price it charges competitors such as BT Vision and Virgin Media to broadcast the flagship Sky Sports 1 and 2 channels on their own platforms. Last month Ofcom asked the Competition Commission to look into what it described as Sky's dominance of the pay-TV film market.

Darroch naturally denies that Sky is unfairly distorting competition in the marketplace, adding that these "unnecessary" investigations undermine the incentive for investment in new programming. Sky says it pumps about 1.7bn every year into content, more than any other commercial broadcaster in the UK.

It has about 9.9 million UK customers, including one in every three Scottish households. It is this dominance that makes rivals and regulators nervous, while Sky insists that consumers have never had more choice over what to view and when.

"The first thing you need to say is that the customers are not complaining," Darroch says. "None of this has been instigated by consumers. That is one of the reasons why we are challenging a lot of the (Ofcom] rulings."

Sky has filed a three-pronged appeal against the decision on wholesale pricing for its sports channels, starting with the argument that Ofcom's powers do not extend to using the Communications Act to push through pricing regulations. The group also claims that Ofcom was selective in its interpretation of certain facts and evidence, and used a flawed analysis to estimate the potential benefits to Sky.

Ofcom must now file its defence with the Competition Appeal Tribunal, with a hearing likely to follow later this year.

Darroch says Sky has "bold aspirations" to break out of its traditional niches in sports and films. The aim, he says, is to offer something for everybody.

"We have an appetite to do more," Darroch says. "We have just come off what has been a very good year for Sky, but we are very much looking forward to the next 12 months."