Since the original publication of this article in 2013, much has changed at Sky. The company successfully acquired 100% of Sky Italia and Sky Deutschland to become one of the biggest pan-European pay-TV suppliers in 2015, and launched a Sky+ replacement last year with 4K support. All the while, they've been piling on customers and increasing revenues. Their 2016 numbers make for impressive reading, with a revenue of £11,965m and an operating profit of £1,558m. Those numbers were up 7% and 12% respectively over the previous year, and helped to convince analysts that Sky had returned to stable growth and a strong footing. What follows is the original article, discussing the 2013 revenue report. Sky news update: as the battle rages on between Sky and BT, who triumphs over the other with regards to broadband services is becoming gradually clearer.
Sky have worked hard over the years to establish their name in the pay-TV market by offering shows and options that is unrivalled, and now that BT have expanded their services to include the broadband, telephone and television service there is a real rival on the scene for Sky.
The customer base that Sky now have is mammoth in relation to all other service providers because they have worked over the years to develop the services they offer in order to create an entire world or channels and programmes exclusive to Sky. With BT entering into the contest so late, and after major companies like ESPN have tried their best to rival Sky with things like sports coverage, it is almost impossible for them to establish the same.
It must be noted of course that while the former, Sky, established themselves as a television operator and then expanded their boundaries to offer telecommunications to their customers, BT have done the opposite. The move into TV surely must be considered a more difficult transition.
This is not to say they won’t be successful though, their figures for new sign-ups to services are impressive. They have, to date, won millions of customers with their strategic planning and millions of pounds of backing that naturally comes from such a well-established company. With initiatives such as the bundle that includes BT Sport free of charge when the customer purchases BT’s broadband services has helped with recruitment.
Sky have done their best to match this offer but there is a fine balance that must be met. Sky offer a larger array of sports programming in particular and this means they have to have higher rates in order to secure the exclusive contracts; this in turn of course means there is less disposable income for the company to use on deals like that offered by BT. Additionally the new BT Sport channel has only been present on the market for a few months and therefore the company are striving to bring customers in and then keep them, so they have an initial budget that can be used for “buying” customers.
Interestingly though despite the presence of BT on the market as well as Sky having to increase the monthly subscriptions for internet services, the number of Sky broadband customers is still on the confident incline. As too is the number of people who are watching their football matches. Meaning that the revenue is also slowly increasing, some very good news for those at Sky.
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