Sky expects to turn to profit on broadband after 2010
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.