Sky adds 24,000 new broadband customers in last quarter
Sky in the last year launched its new Sky Q set-top box and has recently added Ultra HD content, continuing its dominance of the pay TV market in the UK. In the broadband sector it is the second largest retail provider (5,967,000 customers) and over the course of the last 12 months added 347,000 customers, though the last quarter only contributed 24,000 new customers.
The results make it clear that Sky believes that limits to retention discounts, alongside a 4-5% rise in TV pricing have contributed to a 11.2% churn rate across the full product range. Interesting customers taking broadband with a TV package are highlighted as having a high propensity to switch providers, and it is in that area Sky often tempts with £50 to £100 vouchers - the hope we presume being that providers once exposed to more Sky marketing will buy into the TV platform eco-system.
The NOW TV Combo only launched in June so too early to see what effect a contract free triple play will have, though as with Sky Q once you stop paying the box stops working - which is a departure from the Sky Plus boxes which would degrade to showing only free to air channels (but with any recording facility disabled). NOW TV managed some 600,000 transactions for sports passes in Q4, alas no figures on the entertainment and mobile passes.
The future looks set to bring a new Sky Mobile product range as a virtual network operator and the one mention of fibre indicated increased penetration but gave no figures. The York FTTH joint venture with TalkTalk and CityFibre gets no mention at all.