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Sky expects to turn to profit on broadband after 2010
Friday 31 July 2009 16:03:39 by Andrew Ferguson

Sky has been adjusting packages, both in terms of pricing and usage allowances of late, the simple fact that the loss due to Broadband and telephone services was £129 million over the 12 months up until the end of June 2009 goes some way to explaining the changes.

This loss is an improvement on previous years, with the figure falling by £33 million. The recent move to start using fully unbundled lines for those taking broadband and telephone line rental from Sky will help to further reduce costs, projections are such that Sky feels it will lower the loss in 2009/10 and start making a profit thereafter. The full financial report is on the Sky Corporate website.

Sky currently has some 2,230,000 broadband customers, adding 118,000 in the last quarter. The TV, telephone and broadband bundles continue to be popular with customers, where some 16% of the almost 9.5 million customers take a triple play bundle, compared to 11% in 2008.

Sky+ HD customers can also expect to see a video-on-demand service next year, this will be a pull service utilising the Ethernet broadband connection on the Sky+ HD boxes. The current VoD on Sky+ boxes is a push system, utilising spare satellite bandwidth overnight to deliver content to boxes. It is only speculation, but with the size of HD quality video files, the new VoD product may be linked to the roll-out of VDSL2+ by Openreach, which Sky can buy and link directly to capacity they already rent at unbundled exchanges.

Comments

Posted by chrysalis over 7 years ago
the only bit I dont understand is why they only want to rollout proper VoD to sky hd customers and not all sky+. Well I can guess it is a deliberate move to make people upgrade to sky hd just for VoD.
Posted by systemx over 7 years ago
I think it is only HD boxes which have a Ethernet connection?
Posted by 2doorsbob over 7 years ago
I believe sky are our best bet for fibre rollout .once the service rolls out just think how much they could save instead of paying astra .i've been reading up about bandwidth requirements and a single satillite channel uses 1.5 meg times that by 5 is 7.5meg nothing out of 50 meg vdsl2 could support
Posted by chrysalis over 7 years ago
systemx my sky+ box has one
Posted by gavinthain over 7 years ago
I have Virgin 20Mb service. I assume this would work ok with Sky VoD. I certainly do not want to go back to ADSL in any of its forms!
Posted by AndrueC over 7 years ago
@chrysalis:It's probably only going to be available with the new EPG. Sky either can't or won't port the new EPG to older boxes.

Tbh the jury is still out on the new EPG. It looks flashy but there's a lot of complaints and several serious bugs plaguing it. I have a Samsung HD box and I'm currently quite glad that we have got the new EPG yet :)
Posted by chrysalis over 7 years ago
andruec yeah I think its a deliberate tactic, the sky+ boxes originally had a monthly premium so would have probably got the new EPG and proper VOD whilst that was the case, then sky started waiving the fees so now they need more people on sky hd boxes to get monthly revenues so for them it makes sense to make features sky hd only.
Posted by snadge over 7 years ago
2doorsob - you clearly need to learn more about satellite and how it works - they use a whole array of sats to produce hundreds of channels - each HD channel uses about 15-19Mbps and SD channels use about 5-8Mbps - work it out , a 50Mb VDSL2+ service could only supply a couple of channels, Sats broadcast almost 1000 channels simultaneously and its your card+box that allows viewing of specific channels - so in reality SKY's Sat array bandwidth is many thousand Mbps - if they moved onto a fibre service they would have to cancel loads of channels and also lose money
Posted by Fixer109 over 7 years ago
Have you looked at the laatet Sky services which will show you that that Sky is so full of repeats (Have looked at the lagtest Sky Fim then you will realasy that you really been conned!
Posted by chrysalis over 7 years ago
snadge, the fibre service would only need to stream 1-2 channels at once, whilst sattelites constantly transmit so different techs.
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