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Sky broadband in 20% of homes that have Sky TV
Saturday 01 November 2008 18:22:30 by Andrew Ferguson

Those following the ups and downs of the broadband market could be forgiven for thinking that the market is shrinking in the face of the credit crunch. While it is true that some people are giving up telephone lines and DSL for mobile broadband, a lot of the movement in the market is people looking for better value deals.

Bundles of broadband, telephone, TV or mobile phone have been the big success story of the last couple of years, and Sky is evidence of this. The satellite TV broadcaster has published its financial results for the quarter ending 2008 and these reveal that they have some 1.8m broadband customers, and 20% of homes that have Sky TV also have Sky Broadband.

The value of bundles to firms is reflected in that the average revenue per user (ARPU) has risen to a new high with Sky of £430 per year. Of course products like Sky HD which added 93,000 customers in the quarter (total 591,000) with their £10 a month Sky HD Mix fee help to improve the ARPU.

Sky Broadband has been built on the base formed by Easynet and their retail brand UK Online, Easynet still provides broadband in the business sector and generated £47m of revenue.

No one can fully predict the effects of a tightening of home budgets during hard times, but homes with Sky Broadband are likely to stay with Sky even if they reduce the cost of their satellite subscription. So Sky seems to be in a strong position, and has not stalled unlike one or two other providers.


Posted by uniquename over 8 years ago
I think O2 have got a good strategy as well. They have priced LLU presumably at a sustainable level, and pitched IPStream at a high figure either side of Entanet depending on the mobile phone discount, and also now have a mobile/landline bundle. I think they can maintain the unlimited position with cross-subsidies in order to gain a very high market share. Currently frequent problems due to very rapid expansion, but they seem to be handling it better than TalkTalk did.
Posted by uniquename over 8 years ago
How long before the major players are reduced to BT, O2, TT and Sky, (with their subsidiary companies), with either IDNet or Zen plus Newnet in the lower league, and three of the true mobile suppliers seriously threatening the landline operators, which they don't at the moment.
Posted by c_j_ over 8 years ago
"Sky broadband unattractive (or unavailable) to 80% of Sky customers"

That's a fair summary too isn't it?

The majority of UK homes now have DSL broadband don't they? Why aren't Sky seeing that reflected in their numbers (give or take the effect of Sky LLU coverage), given that Sky are experts in bundling to maximise lock-in?

If I were Sky's competition, I'd probably be quite pleased at these numbers.

Posted by pje1979 over 8 years ago
I'd love Sky broadband. It would make my TV subscription seem much better value. unfortunately they haven't unbundled my exchange.
Posted by comnut over 8 years ago
"Sky broadband unattractive (or unavailable) to 80% of Sky customers"

as said before.... <yawn>
"The trouble is they only see *their* numbers, and leave others to wonder why they dont add up....
Most people that have a brain, realise that a lot of people 'have a life' - usually a very hard one!! some must look at this 'give the poor internet' thing and say they would rather have food & warmth instead..."

only things to add - most are 'locked in', prefer another ISP, dont want SKY(so dont get the internet discount), or choose to afford SKY, but not internet...

Posted by jchamier over 8 years ago
CJ - yes, its fair, but it could be people like myself, who can get Sky LLU, and have Sky TV. I have BE because Sky don't offer static IP, and they max limit at 16mbps, and don't offer AnnexM. Should BE stop doing those, then I'd switch.

Friends of mine want Sky, but their exchanges aren't unbundled.
Posted by c_j_ over 8 years ago
"rather have food and warmth"


Except base Sky broadband (2Mbit/2Gbyte) is *free* (£0/month, free activation, free router [1])! How bad must the perception of the service be, that they *literally* cannot give it away????? Even the midrange one (8Mbit/40GByte) is only a packet of fags or a pint and a half a month.

Wrt Be vs the rest: Be are in a rather nice niche at the moment. Good luck to them.

[1] Small Print: it's only "free" if you're not already a Sky customer, otherwise e.g. activation is £75-£25 depending on tariff. Maybe the low takeup isn't such a surprise.
Posted by _TRIaXOR_ over 8 years ago
you can only get Sky BB if you're a sky customer, like jchamier, I'm on Be and was on Sky BB before, reason for switch.. Static IP and not locked at 16Mb (at 19Mb now)but dont knock them, thier service when I was with them was excellent (was on the max package) had a solid 16Mb the whole year I was with them and had my interleave max delay set at 8s, so my pings weren't a problem either, if you can get thier service (LLU) for an extra £10 a month on your sub, its a no brainer tbh..
Posted by _TRIaXOR_ over 8 years ago
8ms that should be lol..
Posted by _TRIaXOR_ over 8 years ago
"like jchamier, I'm on Be and was on Sky BB before"

correction, what I meant to say there is "like jchamier I'm with Be." I don't know who his previous ISP was, lol, but for me, my ex ISP was Sky..
Posted by chrysalis over 8 years ago
broadband is now a utility like television, I expect the actual penetration rate will at least stay static.
Posted by CARPETBURN over 8 years ago
I prefer to have my phone, broadband and TV through individual companies rather than bundle deals... I would never touch Sky TV, Virgin or even BT and their pay for everything you watch scheme. I dont care if they practically give it away, id sooner have a service where if something goes wrong i can tell them to sling their hook and not have to worry about replacing 3 services rather than just 1.
Posted by WharlesBarb over 8 years ago
I have had the sky package for years now and they have been promising my exchange is to be LLU'd for years and still I wait. A friend a year ago on the same exchange number as me bought the full HD package that I have and received the full Broadband free, but still I wait. WHARLESBARB
Posted by billytest over 8 years ago
I have Sky broadband and Sky talk all totally free with free evening and weekend calls. I still pay BT £10.50 per month line rental but will change to Sky shortly. I have had the basic Sky+ TV package for 3 years and would not be without it for recording and rewinding live TV.
Posted by CaptainW over 8 years ago
comnut, why do you think these numbers are low? They have consistently added roughly 160,000 customer's a quarter - to me that's pretty good going and I haven't seen them advertise broadband on TV for sometime as they've been concentrating on HD. I reckon they're doing really well with those numbers.
Posted by comnut over 8 years ago
CaptainW: hmm, I'd like to see where you get your figures... sound like you are much closer to sky than any 'normal consumer' is...

you may need to re-read my post, about those who are still only 8 months or so into their 18 month contract....
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