BSkyB announces internet TV service
Tuesday 31 January 2012
Broadcaster BSkyB started the fightback against competition Netflix and YouView today as it announced a new internet TV service.
Launching in the first half of this year, the service will be aimed at the 13 million households who do not subscribe to pay-TV.
It will initially allow customers to pay to download films without a contract or a satellite dish but will expand its offer to include sport and entertainment soon afterwards.
Sky's TV sales will face growing competition with the launch in the summer of YouView, an internet-connected set-top box involving the BBC, ITV and BT.
And the recent expansion into the UK of Netflix, which allows customers to pay to download movies, and the Lovefilm download and rental business adds a further threat to its model.
The new service was announced as Sky revealed a further slowdown in the number of households that signed up to its TV services to 40,000 in the three months to December 31, down from 140,000 in the same period a year ago.
However, underlying profits grew 16% to a record £601 million in the six months to December 31 as it sold more telephony and broadband packages to existing customers. Revenues rose 6% to £3.4 billion.
Sky also announced it is to create 1,300 jobs over the next two years in the UK and Ireland as it brings more of its customer service and installation work in-house and opens a new service centre in Dublin.
Chief executive Jeremy Darroch denied that the business was threatened by the growth of online businesses such as Netflix and Lovefilm.
He added: "I don't see it threatening our business at all. It's further evidence that this is an exciting market and lots of people see opportunities in it.
"We have competed in the last few decades against all competitors."
Sky said the new service will allow customers to pay to watch its content on devices connected to the internet, including PCs, laptops, smartphones, games consoles and TVs.
It will allow customers to choose whether to pay monthly, or rent a movie on a pay-as-you-go basis, it added.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: "Amidst all the Netflix noise comes a reminder that Sky is not about to give up its crown lightly.
"The launch of its online offering further complements its existing technical reach alongside the potential for new customers."
He said Sky's results were "solid" but concerns lingered that it faces fierce competition and there has also been speculation that it could be outbid for the rights to show Premiership football.
- 1 Reyhaneh Jabbari: Iran due to execute woman for murder of her alleged attempted rapist
- 2 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 3 Expert urges cat lovers to own just one animal each
- 4 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 5 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...