Investors of British Sky Broadcasting Group PLC (BSkyB) are concerned that James Murdoch, the firm's chief executive officer, is spending too much money. Murdoch, the son of Rupert Murdoch, is taking on short-term losses in order to meet longer-term goals, according to industry analysts. In 2006 and over the next three years, Murdoch intends to spend some 700 million pounds to expand broadband Internet and telephony. The move is targeted at competition from telecommunication firms that are moving into BSkyB's television territory and taking a portion of the rapidly growing market. The investment represents the largest made by James Murdoch outside the area of television since he became chief executive of the company in 2003. BSkyB has been, to date, a pay-television broadcaster known for selling subscriptions to the British that are heavy on soccer matches. Investors were aware that the company would make a push into the broadband market, but they were not prepared for the size of the investment. James Murdoch informed them that the investment would reduce profits by 400 million pounds over a three-year period. At this news, shares of BSkyB dropped by four percent. James Murdoch has been chief executive of the company since 2003, but his father, Rupert Murdoch, is thought to know about the large investment action taken by his son. Rupert Murdoch is chairman of BSkyB and runs News Corp., which owns 38 percent of BSkyB.