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FACT BOOK 2005 1. SATELLITE 4. HOW DOES IT Orbiting 22,300 miles in space, the satellite Positioned so it can receive signals from receives signals from our uplink facility at the satellites. ALL WORK? Chilworth, Hampshire. 5. SKY BOX 2. UPGRADING VIEWING PACKAGES Enables customers to receive digital HERE’S THE Customers simply call our contact centres quality TV pictures and sound. in Scotland. A signal is then transmitted QUICK READ. via satellite to the customer's Sky box, 6. SKY DIGITAL CENTRE, ISLEWORTH allowing access to the programmes. Sky’s programming is brought together in Isleworth, then transmitted to the satellites 3. INTERACTIVE LINK via our uplink facility at Chilworth. Interactive services and data can be accessed through the line via the modem in the Sky box.

1 2 3 4 5 6

CONTENTS FIND OUT ABOUT ONE OF THE BIGGEST BUSINESSES IN THE UK PAGES 02-09 ENTERTAINMENT FOR EVERYONE HOW DO WE KEEP 7.6 MILLION CUSTOMERS HAPPY? PAGES 10-11 MAKING THE COMPLEX SIMPLE HOW DOES SKY DO THAT? PAGES 12-13 WHAT WE DO, WHERE WE DO IT HOW DOES IT ALL FIT TOGETHER? PAGES 14-15 PROGRAMMING SOMETHING FOR EVERYONE? PAGES 16-31 CHANNEL LINE-UP HOW MANY CHANNELS CAN ACTUALLY GET? PAGES 32-33 SKY MEDIA HOW DOES SKY HELP ADVERTISERS? PAGES 34-35 SKY INTERACTIVE WHAT MAKES SKY DIFFERENT TO THE REST? PAGE 35 CORPORATE RESPONSIBILITY WHAT IF I LOOKED BENEATH THE SURFACE – WHAT ELSE WOULD I FIND? PAGES 36-37 MEDIA MONITOR WHO REGULATES YOU? PAGE 38 GLOSSARY PAGES 39-43 INDEX PAGE 44 TIMELINE INSIDE BACK COVER THESE ICONS INDICATE SOURCES OF FURTHER : THIS BOOK GIVES YOU THE FACTS

FURTHER READING BEHIND THE SUCCESS OF ONE OF CONTACT SKY THE MOST DYNAMIC COMPANIES GO TO THE WEB FOLLOW THE LINK IN THE UK. LAUNCHED JUST 16 YEARS AGO, SKY HAS BECOME A WORLD LEADER IN INNOVATIVE, MULTICHANNEL DIGITAL . TURN THE PAGE TO DISCOVER HOW SKY HAS CHANGED THE FACE OF HOME ENTERTAINMENT IN THE UK AND IRELAND.

SKY FACTS. THE BASIC PACKAGE. Sky launched 16 years ago. Sky is owned by British Sky Group plc, one of the largest companies in the UK, with shares listed on the and New York Stock Exchanges. The Company’s activities are subject to regulation by (you’ll find further details on page 38).

Sky Fact Book British Sky Broadcasting Group plc 01 CHANGING THE FACE OF HOME ENTERTAINMENT.

RESCUE ME - STARRING DENIS LEARY. NEW TO . FACT. SEE PAGE 16 FOR MORE INFORMATION.

02 British Sky Broadcasting Group plc Sky Fact Book CUSTOMER GROWTH 1998-2004 SKY TODAY As at 31 December SKY’S £2 BILLION INVESTMENT IN DIGITAL 7.6m Sky’s target is to reach TELEVISION MAKES IT A CLEAR LEADER 10 million customers in 2010. Fact. IN MULTICHANNEL BROADCASTING IN THE UK AND IRELAND, AND HAS BROUGHT THE CONCEPT OF HOME ENTERTAINMENT TO LIFE. OUR EFFORTS HAVE BROKEN NEW GROUND, MADE BRITAIN THE WORLD LEADER IN DIGITAL TV AND

DIGITAL CHANNEL GROWTH ALTERED THE LEISURE PATTERNS OF 1998-2004 MILLIONS OF PEOPLE, INCLUDING A As at 31 December 493 PROPORTIONALLY LARGER NUMBER IN From 140 channels in 1998 to over 480 by the end of 2004. THE ABC1 DEMOGRAPHIC. An increase of 353%. Fact. THE CHOICE AVAILABLE TO SKY CUSTOMERS CONTINUES TO GROW. TODAY THERE ARE MORE THAN 7.6 MILLION CUSTOMERS ENJOYING THE BEST IN ENTERTAINMENT, NEWS, SPORT AND MOVIES ON OVER 480 OPERATING PROFIT GROWTH CHANNELS. THIS MEANS WE’RE KEEPING 2000-2004 As at 31 December THE NATION BETTER ENTERTAINED AND, £354m IN TURN, BRINGING GREATER BUSINESS Operating profit before goodwill and exceptional AND FINANCIAL REWARDS FOR SKY. items increased by 25% on last year. Fact.

FOR FURTHER INFORMATION ABOUT SKY’S BUSINESS: SKY ANNUAL REPORT AND ACCOUNTS

Sky Fact Book British Sky Broadcasting Group plc 03 INCREASED CUSTOMER SKY’S OBJECTIVE NUMBERS OUR OVERALL OBJECTIVES ARE TO INVESTMENT IN ‘MUST-SEE’ MAXIMISE VALUE FOR SHAREHOLDERS PROGRAMMING INCREASED BY GROWING CUSTOMER NUMBERS INCREASED CUSTOMER POPULARITY OF CHOICE CHANNELS PROFITABLY AND, ULTIMATELY, TO DISTRIBUTE SKY ENTERTAINMENT TO EVERY HOME IN THE UK AND IRELAND. ‘Must-see’ programming is at the of the offer to our PAY TV IN THE USA HAS REACHED customers. Fact. 80% PENETRATION. WE BELIEVE IT WILL DO THE SAME HERE, WHERE

DIGITAL CHURN PENETRATION IS JUST 44%. 2000-2004 (Quarterly annualised) As at 31 December AS OUR BUSINESS GROWS, WE 9.5% EARN THE REVENUE TO CONTINUE We have one of the lowest rates of churn in the OUR DISCIPLINED INVESTMENT IN broadcasting world. Fact. ‘MUST-SEE’ PROGRAMMING. THIS MEANS THE CHOICE AVAILABLE TO OUR CUSTOMERS GROWS, AS DOES THE POPULARITY OF OUR CHANNELS. IN TURN THIS HELPS TO GROW CUSTOMER NUMBERS AND KEEP CHURN1 AS LOW AS POSSIBLE. WE'LL ALSO GROW OUR CUSTOMER NUMBERS BY FOCUSING ON MARKETING. WE THINK THAT WHEN SOMEONE ‘GETS’ SKY, THEY’LL GET IT.

1. Churn - the percentage of customers who cancel (or let lapse) their subscription each year.

04 British Sky Broadcasting Group plc Sky Fact Book CHANGING THE FACE OF HOME ENTERTAINMENT.

SKY’S LIVE COVERAGE OF THE 35TH RYDER CUP IN 2004 ATTRACTED A RECORD GOLF AUDIENCE FOR SKY. FACT. SEE PAGE 24 FOR MORE INFORMATION.

Sky Fact Book British Sky Broadcasting Group plc 05 CHANGING THE FACE OF HOME ENTERTAINMENT.

ON US ELECTION DAY 2004, MORE VIEWERS IN THE UK AND IRELAND WATCHED THAN ANY OTHER UK 24HR NEWS CHANNEL. FACT. SEE PAGE 20 FOR MORE INFORMATION.

06 British Sky Broadcasting Group plc Sky Fact Book REVENUE vs. PROGRAMMING SPEND As at 30 June 2004 THE INGREDIENTS FOR SKY’S SUCCESS

46.8% SKY IS ALL ABOUT PROVIDING WHAT Our investment in programming forms the largest component of PEOPLE WANT TO WATCH. THAT’S WHY our operating cost. Fact. WE SPENT £1,711 MILLION LAST YEAR

Revenue ON PROGRAMMING ALONE. BUT WITH Programming spend SKY, PEOPLE CAN ALSO CHOOSE HOW THEY WANT TO WATCH AND WHEN THEY WANT TO WATCH. OUR CUSTOMERS CAN CHOOSE TO CREATE THEIR OWN TV SCHEDULE, PAUSE LIVE TV, WATCH

CONTACT CENTRE ACTIVITY DIFFERENT SHOWS IN DIFFERENT 2000-2004 ROOMS, RECORD TWO SIMULTANEOUS 34.4m calls answered annually INTERACTIVE EVENTS ON THE SAME At peak times of the year CHANNEL, CHOOSE A SPORTS CAMERA we receive up to one million calls per week. Fact. ANGLE, FOLLOW RECONSTRUCTIONS OF KEY TRIALS, AND CHOOSE THEIR OWN STARTING TIMES FOR MAJOR MOVIES. WE BACK IT ALL UP WITH OUTSTANDING SERVICE. WHEN ANYONE HAS AN ENQUIRY, ONE OF OUR CONTACT CENTRE STAFF WILL DEAL WITH IT. THEY AIM TO KEEP OUR CUSTOMERS HAPPY AND MAKE SURE AS MANY HOMES AS POSSIBLE ARE ENJOYING SKY.

FOR FURTHER INFORMATION ABOUT OUR SCOTTISH OPERATIONS: SKY IN SCOTLAND FACT BOOK

Sky Fact Book British Sky Broadcasting Group plc 07 CHANGING THE FACE OF HOME ENTERTAINMENT.

ONE OF THIS YEAR’S BLOCKBUSTER MOVIES ON WAS SHREK 2 WHICH BROADCAST IN FEBRUARY 2005. FACT. SEE PAGE 28 FOR MORE INFORMATION.

08 British Sky Broadcasting Group plc Sky Fact Book SKY MULTIROOM TAKE-UP As at 31 December 2004 THE OUTLOOK FOR SKY 473,000 THE PROSPECTS COULDN’T BE BETTER. Multiroom households increased by 116,000 in the quarter. Fact. AND SKY COULDN’T BE BETTER PLACED. THE TOTAL NUMBER OF HOUSEHOLDS IN THE UK AND IRELAND TAKING ONE OR MORE SKY CHANNELS IS OVER 15 MILLION. BUT IN TOTAL THERE ARE OVER 26 MILLION TV HOMES IN THE UK AND IRELAND AND OUR DIGITAL SIGNAL CAN REACH APPROXIMATELY 99% OF THEM. SO IT’S A LARGE MARKET SKY+ TAKE-UP 2002-2004 AND THERE’S STILL CONSIDERABLE ROOM As at 31 December FOR GROWTH IN THE FUTURE. 642,000 customers Sky+ continues to prove to be a success. 28% of Sky+ customers are new to Sky. Fact. NEW TECHNOLOGY SUCH AS THE SKY+ BOX, MULTIROOM AND HIGH DEFINITION TV WILL HELP US ADD INCREMENTAL REVENUES IN THE FUTURE. CRITICALLY, AS WELL AS PROVIDING ADDITIONAL SERVICES TO OUR EXISTING CUSTOMERS, NEW SKY+160 - HELPING TO DRIVE SALES THESE CUSTOMER-FRIENDLY TECHNOLOGIES The new Sky+160 box, gives ALSO HELP BRING IN MANY CUSTOMERS people up to 80 hours’ video COMPLETELY NEW TO SKY. storage. That’s four times more than the standard Sky+ box. Fact. BY 2010 WE AIM TO HAVE 10 MILLION DIRECT-TO-HOME2 CUSTOMERS, WITH x4 AT LEAST 25% OF THEM ENJOYING THE BENEFITS OF THE SKY+ BOX. SKY IS WELL POSITIONED TO CONTINUE ITS SUCCESS AND IS LOOKING FORWARD TO DELIVERING INCREASING RETURNS ON THE SUBSTANTIAL INVESTMENT IT HAS MADE IN . KEEP WATCHING...

2. Direct-to-Home - a customer receiving Sky digital via a minidish and Sky box at home.

FOR FURTHER INFORMATION ABOUT SKY+ AND MULTIROOM, GO TO THE WEB: WWW.SKY.COM/SKYPLUS WWW.SKY.COM/MULTIROOM

Sky Fact Book British Sky Broadcasting Group plc 09 ENTERTAINMENT WE’RE SETTING THE PACE IN THE TV FOR EVERYONE ENTERTAINMENT INDUSTRY. A GREAT RANGE OF VIEWING PACKAGES3 MEANS THERE REALLY IS SOMETHING FOR EVERYONE.

1 Everyone’s invited OUR BRANDED SMART Customers attracted by our marketing CARS RAISE AWARENESS campaigns can call our contact centres, or visit Dixons, Currys, Comet, John Lewis AND HELP INTRODUCE and many independent electrical retailers to join Sky. We also offer a Sky starter pack SKY TO NEW CUSTOMERS. through other high street retailers such as Argos, Woolworths, Carphone Warehouse, FACT. and in Tesco’s large Extra stores. All shoppers have to do is choose their preferred viewing package and call us to arrange installation.

1 Sky-branded Smart car We also attract new customers with our fleet 2 Sky starter packs of eye-catching, Sky-branded Smart cars.

Music and channels cover For all the latest business The kids have got 21 channels Comedy, drama, reality TV, food, every genre for our audience. Fact. information, turn to Sky. Fact. of their own. Fact. motors... whatever suits you. Fact. TALK ARTS MUSIC DANCE RUGBY DATING DRAMA TRAVEL TICKETS COMEDY HISTORY QUIZZES TEXTING BETTING FASHION CULTURE COOKING MYSTERY BUSINESS FOOTBALL SUSPENSE DISCUSSION GARDENING HOROSCOPES BIOGRAPHIES INFORMATION COMPETITIONS HORSE RACING HORSE CHILDREN’S TV INTERACTIVITY ENTERTAINMENT

3. Viewing package – a selection of channels for a set subscription.

10 British Sky Broadcasting Group plc Sky Fact Book These travel the land spreading the word at approximately 25 different movies every day Putting the customer firmly in control events, shopping centres and in residential on Sky Box Office. They also receive 131 TV With options like Favourites and Parental areas using a fully-installed Sky+ box and channels and over 85 radio channels which Control, and products like Sky+, customers mini viewing theatre in the boot, fed by the are available -to-air on the Sky platform. remain in control of the wide choice available. rooftop minidish. Customers can normally change their package by making a simple phone call to Keeping customers in the know Expanding the audience our contact centres. We distribute Sky The Magazine free to most The Freeview digital terrestrial service offers Sky digital customers. The magazine offers an Sky News, News and , entertaining selection of celebrity interviews, increasing Sky’s potential audience. Sky’s topical features and reviews, as well as showbiz offer is another way of expanding this news. In 2004 we launched Sky Kids - a potential. Customers make a one-off payment magazine for 6-12 year olds, featuring all and receive a minidish, Sky box, viewing card their favourite TV characters and programmes. and installation, giving them access to 131 free-to-air TV and over 85 free-to-air radio 2 These magazines help sustain customer loyalty channels - with potential to upgrade if they and keep customers up-to-date with new wish to add a Pay TV service. services and features being added. Circulation figures in 2004 averaged 6.6 million. What exactly do you get when you join? Sky’s also available on cable When you join Sky you can choose which Most people receive Sky through our satellite viewing package you prefer. We currently system, but in areas with a cable network, offer more than 90 different packages, each over three million households choose to get with a selection of channels, so it’s easy to Sky channels by cable. MOST OF OUR find one that suits you. The most popular is Sky World with Family Pack, which delivers The widest choice possible CUSTOMERS 115 digital TV, radio and audio channels. At From mainstream programmes such as sport, the other end of the is the Value news and movies, the choice extends to sub- CHOOSE OUR TOP Pack, with 6 digital TV, radio and audio genres including comedy, history, drama, music, TIER SKY WORLD channels. In addition to their selected arts, nature, children’s TV, travel, minority package, our customers can choose from channels and lifestyle programming. PACKAGES. FACT.

Over 450 different movies Sky News is seen as the most trusted3,000 pages of health information The best documentary channels Over 20 dedicated sports channels screened every week. Fact. 24hr news channel in Britain. Fact.on NHS Direct interactive TV. Fact. available anywhere in the UK. Fact. available on the Sky platform. Fact. DIY GOLF FOOD SCI-FI STYLE ADULT EMAIL SPORT ADVICE TENNIS HEALTH VOTING BOXING CRICKET SCIENCE COMEDY HORROR FANTASY LIFESTYLE RELAXING ROMANCE LEARNING SHOPPING THRILLERS LAUGHTER DISCOVERY ADVENTURE BREAKING NEWS BREAKING DOCUMENTARIES MINORITY INTERESTS BLOCKBUSTER MOVIES BLOCKBUSTER

Sky Fact Book British Sky Broadcasting Group plc 11 MAKING THE INNOVATIVE TECHNOLOGY, COMPLEX COMPLEX SIMPLE LOGISTICAL OPERATIONS, FIRST CLASS CONTACT CENTRES – LEAVE ALL THAT TO SKY. ALL THE CUSTOMER HAS TO DO IS SIT BACK AND ENJOY THE ENTERTAINMENT EXPERIENCE.

Outside sports broadcasts 1,000+ Bringing our customers a live Premiership football match adds SPORTS OB’s PER YEAR up to a complex, logistical operation – as these outside broadcast (OB) numbers show.

CAMERA TRUCKS 30 POSITIONS 100+PEOPLE TEAMS 8MILES OF 2 CABLING DIRECTIONAL 16 MICROPHONES 10 When turns break he can on the gas 20 mph markthe over Fact. 100 metres. A prey hunting cheetah hits over 70 mph over a one mile Fact. distance. travels signal digital Sky’s to the satellite 50,000 miles and back a than in less quarter of a second. That’s 720 million mph. Fact. 1 MILE SPEEDLINE 100 METRES 50,000 MILES

12 British Sky Broadcasting Group plc Sky Fact Book Keeping it simple Our digital service couldn’t be easier to use and the features on this page prove it.

The Sky remote Use it to access everything from the channels, to camera angles, to ordering a movie. It’s simple.

One button, lots of options Control live TV at the press of a button The red button is your key to Sky’s With Sky+ you can pause, rewind and 2 1 interactivity. replay live TV.

3 INNOVATION AWARD

1 These four green buttons help you get the 2004 - GOOD most out of Sky's digital features. 2 Once you have accessed an interactive HOUSEKEEPING service you can use the coloured buttons to do everything from voting to making MAGAZINE. FACT. purchases. 3 Ergonomically designed. Fits perfectly into either hand.

1st Just a phone call away We are on track to be the first to launch Our contact centres can advise customers’ on High Definition TV (HDTV) in the UK in 2006. viewing packages and answer their questions. This will be the biggest revolution in TV viewing since the launch of digital in 1998.

Designed to be the best Sky+ couldn’t be easier The on-screen TV guide provides customers In 2004, we launched the new Sky+160 box with up-to-date information on channels, and with a 160GB hard disk, offering four times includes our easy to use personal planner. the storage space of the original Sky+ box.

We’ve also got some exciting upgrades to Sky+ coming soon. Like being able to set recordings by mobile phone, and scheduling a recording from an ad or trailer for a particular show. Increasing demand To help raise awareness of Sky+, we offered limited edition versions of the Sky+ box. Sold exclusively at Selfridges and featuring designs inspired by leading fashion and interior designers, including Matthew Williamson and Cath Kidston, it has helped to drive sales.

Upgrading – without downtime We can upgrade at any time, day or night, without interrupting the customer’s entertainment.

Sky Fact Book British Sky Broadcasting Group plc 13 WHAT WE DO, KEEPING 7.6 MILLION CUSTOMERS WHERE WE DO IT INFORMED AND ENTERTAINED TAKES SOME DOING. SKY’S EMPLOYEES MAINTAIN AN EXTENSIVE INFRASTRUCTURE ACROSS THE UK AND IRELAND TO DO JUST THAT.

SKY WON THE MITIAL BEST SCOTTISH CALL CENTRE WORKPLACE AWARD IN 2004. FACT.

EVERY DAY

OVER 11,000 HOURS OF ENTERTAINMENT, NEWS, SPORT

AND MOVIES TO 7.6 MILLION CUSTOMERS, EVERY DAY. FACT. , ® will bring viewers closerviewers will bring than everThe Oscars. to before Sky Box dedicates Office signed in-vision 738 to channel 739 to and channel movies further with narrative, films film offering Sky’s enhancing for with hearing customers loss. and sight Sky One’s autumn season with a new on-air launched look winning and the award Deadwood. HBO production, Critically sports acclaimed reality show The showed Match in a innovation stagnating real responded, Customers genre. by watched with the game an in excess audience average of 1.7 million. Sky News won both the RTS and the News Award Innovation Year of the Channel in 2004. SkyIn 2004, awarded News was and has News contract Five the the terrestrial been producing January news since channels 2005. an offers First Football of highlights choice interactive everyfrom Premiership Barclays day. that played match Skyis acquisition Sports’ latest rugbylive runs The deal union. 2010. until SeptemberSky 2004 was Sports’ with over ever, month busiest outside broadcasts. 130 live multi-year an exclusive Through UK the to broadcast deal Academy Awards SKY ONE 2004-2005 SKY NEWS MILESTONES SKY SPORTS SKY MOVIES ENTERTAINMENT

14 British Sky Broadcasting Group plc Sky Fact Book Outstanding customer service We have invested almost £200 million to voice-coaching, communication skills Staff at our contact centres are responsible equip our contact centres with state-of-the-art and team building. Permanent staff enjoy for building long-lasting relationships technology and create a stimulating working a free Sky+ package, which helps them with customers, dealing with their environment for around 6,000 employees in learn all about the product so they can queries and helping to arrange new Scotland. In 2004, Sky was delighted to win share their enthusiasm with customers. services for them. the Mitial Best Scottish Call Centre award.

It’s a fact that during busy periods, like the Training lead up to Christmas, they can receive up Staff at our contact centres receive full and to one million calls a week from customers ongoing training covering the entire range throughout the UK and Ireland. of Sky’s products and services as well as

Full of news, views and information, Vision magazine is given to every member of staff, 10 times a year.

EVERYONE EVERYWHERE

ALL OF OUR 13,000+ EMPLOYEES PLAY A VITAL OUR NETWORK OF INSTALLATION ENGINEERS COVER

ROLE IN THE SUCCESS OF SKY’S BUSINESS. FACT. THE WHOLE OF THE UK, AS THAT’S HOW FAR OUR DIGITAL

REACH EXTENDS. FACT.

Outstanding performers The satellite footprint Well connected The person on the phone at the contact The satellites used by Sky cast a Installation engineers working across centre, the advertising specialist you talk to, comprehensive footprint over the UK and the UK are co-ordinated from Livingston. the engineer who’s arrived to install your Ireland. Approximately 99% of households Their main role is to install the Sky minidish, minidish and Sky box, the news presenter or within this footprint can get Sky’s digital connect up the Sky box and the phone the sports expert – they are all outstanding service. That’s more than any other UK line, and show the customer how to use in their field. digital television service. the Sky remote to access and operate the service. We use distinctive Sky-liveried fleet And what about those you might never see vans. Based at home, installation engineers or talk to? The administrative functions are receive their daily work schedules via mobile vital to keeping a large, successful business Satellite reach over handsets, therefore improving efficiency like Sky running day-to-day. Astra 2A satellite footprint and cutting down paperwork. Astra 2D satellite footprint Internal communications A vital link between the Company and over 13,000 staff. Communications include: • magazines such as Vision and digitalk. • the Sky Forum, where over 65 elected staff members meet with the executive team. • events such as management conferences, contact centre roadshows and staff parties. • flyers, the intranet and emails that arrive simultaneously across all Sky sites.

Sky Fact Book British Sky Broadcasting Group plc 15 SKY ONE’S STRATEGY FOR SUCCESS IS BUILT ON TWO KEY FACTORS: SCREENING MANY OF THE BEST U.S. SHOWS BEFORE ANYONE ELSE IN THE UK AND CONSISTENTLY DELIVERING HIGH-QUALITY DISTINCTIVE PROGRAMMING THAT HAS A BROAD APPEAL. THIS COMBINATION HAS MADE SKY ONE THE UK’S LEADING PAY TV CHANNEL. 172,303 INTERACTED WITH THE MATCH 16th SEASON OF THE SIMPSONS

16 British Sky Broadcasting Group plc Sky Fact Book THE HOTTEST TALENT Rescue Me is a gritty comedy-drama that centres on the personal and emotional battles of New York’s firefighters in a post 9/11 world. Rescue Me was created by Denis Leary whose firefighter cousin died in action in 1999. Leary stars as Tommy Gavin, a senior fireman torn by sorrow and anger as he copes with the stresses and fears of his job.

Sky Fact Book British Sky Broadcasting Group plc 17 Original productions SKY ONE for Sky One: Hex The Match Greatest Sporting Hero Conspiracies Brainiac: Science Abuse So You Think You’re Safe Secret Lives of... Made in LA Dream Team

Audience profile Growing in importance Developing new formats Q2 2004-2005 Sky One regularly beats BBC2, C4 and five Sky One continues to invest heavily in in Sky digital homes. Sky One monitors its commissioning new shows and formats 35% 37% 10% own performance very carefully through from independent programme makers. Sky One a range of criteria to ensure it delivers A new series of authored documentaries the programmes that customers really includes Julie Burchill discussing Chavs, 35%28% 13% want to see. Sky’s contact centres ask and Peaches Geldof providing an insight Total TV customers for feedback and forward it to into the teenage mind, whilst a team of 16-34 35-54 55+ the programming team, while information soccer-crazy celebs will get the chance Source: BARB/Infosys from the Broadcasters Audience Research for revenge when they square up against Board (BARB) completes the picture. ex-professionals in hit sports reality show The Match which returns in the autumn. In 2004, Sky One made a significant shift in programming emphasis, with high-end UK In early 2005 Sky One broke new ground programming such as drama series Hex and by becoming the first broadcaster to popular documentary series Conspiracies produce their own version of the world- joining award-winning shows such as 24 famous Entertainment Tonight, whilst and Nip/Tuck on the channel. Greatest Sporting Hero will provide brand new major event programming Introducing long-running shows for the summer. Controversial drama Nip/Tuck and the stylish crime series Cold Case, are starting second seasons; 24 enters its fourth series and 2005 1 sees Brainiac: Science Abuse’s third series 2 and a new spin-off, Brainiac: History Abuse. The Simpsons is going strong, with season 16 showing new episodes four years ahead of any other UK channel.

Identifying top-rating shows Sky One is known as an innovator, with its ability to identify and deliver top rating shows from across the Atlantic playing a powerful part in maintaining the loyalty of Sky customers. To underline this point, 3 three of the five dramas nominated for this year’s Golden Globes debuted on the channel in 2004. And Sky One retains exclusive UK rights to award-winning shows like 24 and Deadwood.

4

2004 PROGRAMMING ON SKY ONE HAS WON THREE AWARDS. FACT.

18 British Sky Broadcasting Group plc Sky Fact Book 5 HITS FROM THE U.S. Programmes such as Deadwood, for which Ian McShane won a Golden Globe acting award, help reinforce Sky One’s position as the home for the hottest shows.

124 2 Mile High, in production 3 Peaches Geldof: Inside the Mind of a Teenager 4 The Match – interactive screen 5 Deadwood 6 Rescue Me 7 Nip/Tuck 8 Sky One Active

New successes GOING INTERACTIVE Recent successes include The 4400, the NIP/TUCK – WINNER Interactivity brings a new perspective highest-rated sci-fi launch; Stargate Atlantis, OF A GOLDEN GLOBE to shows like The Match, where customers the sci-fi drama, and Deadwood, which get to vote for man of the match, plus combines fictional and historical characters AWARD FOR BEST whoever they want to leave the show. in South Dakota in 1876 and is one of the most controversial and talked-about TELEVISION SERIES – Sky One has also recently launched some shows of the year in the U.S. of the most exciting interactive services DRAMA.FACT. for any channel. For shows like Nip/Tuck Commissioned highlights include and 24, Sky customers are able to see Conspiracies, rising star Danny Wallace’s video recaps or sneak previews of the original take on some of the world’s little plot, as well as see additional information explored but most fascinating mysteries. 7 about the show, and enjoy quizzes High-concept UK drama series Hex and competitions. proved to be one of the most successful multichannel drama launches and celebrity football event The Match provided one of the TV moments of the year, with series two planned for autumn 2005. 8

The place for talent With Denis Leary in Rescue Me, Joely Richardson, Famke Janssen and Vanessa Redgrave in Nip/Tuck, Kiefer Sutherland in 24 and Ian McShane in Deadwood, Sky One is the channel to see some of the finest acting talent around.

6 Original documentaries for Sky One: Chavs Peaches Geldof: Inside the Mind of a Teenager Camp Jackson Poisoned

GO TO THE WEB: WWW.SKYONE.CO.UK

Sky Fact Book British Sky Broadcasting Group plc 19 WHOLE NEW PERSPECTIVE ON NEWS For the 2004 U.S. Presidential election, Sky News took to the air, criss-crossing the nation and gauging its mood for a week of special reports in Sky Across America. In Britain, in what’s likely to be an election year, the SkyCopter will travel across the country as Sky News asks the public what issues matter most to them.

20 British Sky Broadcasting Group plc Sky Fact Book SKY NEWS COMBINES SPEED, ACCURACY AND IMMEDIACY WITH INNOVATIONS IN AUDIENCE INTERACTIVITY, MULTI- SCREEN COVERAGE AND ITS OUTSTANDING REPORTING OF BREAKING NEWS. TODAY, THE AWARD- WINNING NEWS CHANNEL IS SEEN AS THE LEADER IN 24HR NEWS. 3 (RTS) NEWS CHANNEL OF THE YEAR AWARDS, THREE YEARS IN A ROW 16 YEARS OF BREAKING NEWS

Sky Fact Book British Sky Broadcasting Group plc 21 SKYCOPTER 4 SKY NEWS On the ground, Sky News uses the latest satellite phone technology and digital links, helping to build its reputation for rapid reaction. While in the air, the SkyCopter brings a whole new perspective to news stories.

Audience profile When it launched in 1989, Sky News became Q2 2004-2005 Europe’s first 24hr news channel. Since then, Since its launch in Spring 2004, Sky News it has established itself as a formidable and Ireland has gone from strength to strength, 17% 44% 34% innovative force in broadcast journalism, with two evening bulletins presented by Sky News earning its status as Britain’s most popular Gráinne Seoige at 7pm and 10pm. Over two- news channel and winning its second thirds of all households in Ireland can receive 35%28% 13% consecutive BAFTA in 2003 and its third the service. Sky News Ireland continues to Total TV Royal Television Society (RTS) award for break exclusives, its most recent being an 16-34 35-54 55+ News Channel of the Year in 2004. In 2004 exposé of an Irish Government minister. Source: BARB/Infosys Sky News bid for, and was awarded, the Five News contract. The authoritative voice Sky News is not the ‘voice of the 3 establishment’ but is impartial, authoritative and sometimes irreverent. One of its key aims is to engage the viewer in the news whilst reporting the hard facts. The pace is fast, with headlines every 15 minutes. As pioneers in the use of live reporting from the scene, Sky News helps bring viewers closer to the news: in effect, they become witnesses to the news as it happens.

The acceptance of Sky News as an 16 years of breaking news authoritative provider of global news The main reason for Sky News’ continuing is spreading. Since January 2005, Sky News success is its proven ability to deliver breaking has produced news bulletins for five from news ahead of its rivals, and its track record a new purpose-built newsroom at Sky includes live coverage of some of the defining headquarters. Sky News anchor Julie news events of the past 16 years. The day Etchingham has joined Five News regular after the Indian Ocean tsunami struck, Kirsty Young and, with the rest of the Five Sky News presenter Jeremy Thompson was News team, they take a distinctive anchoring the channel’s comprehensive look at the issues of the day and deliver coverage from . Sky News’ seamless special in-depth investigations. crossing from reporters and presenters across 1 Thailand, Sri Lanka and won Sky News is also one of the channels widespread acclaim from within the industry. available as part of the Freeview service on digital . And Sky News Sky News was first to break the news of Radio is the second biggest supplier of news the September 11 terrorist attacks and was to commercial radio stations in the UK. live in Baghdad as the sirens signalled the start of the Iraq War. In 2004, Sky News Exclusives led the British coverage of the horrific Sky News continues to break regular national Russian school siege in Beslan, entering and international exclusives, including the the grounds and delivering an eye-witness first Western broadcast interview for four account of the tragedy. In fact, when the years with Zimbabwe’s President Robert 2 big stories break, customers in multichannel Mugabe, and going undercover to expose homes turn to Sky News more than any serious security flaws at Heathrow other 24hr news channel. International Airport.

GO TO THE WEB: WWW.SKY.COM/NEWS

22 British Sky Broadcasting Group plc Sky Fact Book SKY NEWS INTERACTIVITY 6 Sky News Active is the world’s first BRINGS NEW interactive television news service, with eight screens for customers to choose from. AND IMAGINATIVE People also feel closer to the news with the popular Active voting system, where over SOLUTIONS TO five million votes have now been cast. COVERING THE Sky remains the leader in adapting new technology to rolling news, and can now BIG TRIALS OF go live to customers on 3G phones to get THE AGE. FACT. their opinion on the story of the day.

5 Over the past 16 years, Sky News 8 10 has covered these defining events: Fall of Communism in Eastern Europe Release of Nelson Mandela Bosnia crisis Trial of OJ Simpson Trial of Louise Woodward Britain’s 1997 General Election Death of Princess Diana Kosovo crisis 9 September 11 terrorist attacks Iraq War 2003 Beslan siege U.S. 2004 Presidential Election Innovation Indian Ocean tsunami disaster Sky News’ ground-breaking use of reconstructions and transcripts to cover the Hutton Inquiry and the Soham murder trial won much acclaim. In 2005, Sky will be using Awards Talent the same skills and imagination to cover the For three years running Sky News has won The channel’s team of reporters, editors and big cases of the year, including the trial of RTS News Channel of the Year. The 2004 producers is widely regarded as the best in pop singer Michael Jackson, and the inquest judges were unanimous in their view that the business. The ITC, in its report ‘Conflict into the deaths of Princess Diana and “none yet matched the winner, who had around the clock - audience reactions to Dodi Fayed. continued to innovate in their coverage of the media coverage of the Iraq War’, comments: war and elsewhere and, as a news channel, “The rolling news services came into their The introduction of an on-screen ticker remains - simply the best.” And the United own as the war became a 24hr news event. to relay messages from survivors of the Nation’s Department of Public Information Sky News outstripped competition from tsunami disaster to anxious relatives was presented the Sky News report Sudan with the other dedicated news channels, another Sky innovation that struck a its Gold Award at the 2005 New York achieving a 67% share of all news viewing chord with the public. Television Festival. at the expense of the key public service broadcasters BBC1 and ITV1.”

7 TSUNAMI When disaster struck, Sky News presented from Sri Lanka, Thailand and Indonesia with innovative, informative and helpful coverage.

1 2 Five News - Kirsty Young 3 bureau, Delhi 4SkyCopter 5 Hutton Inquiry reconstruction 6 Sky News Active - eight screen 7 Reporting the Indian Ocean tsunami disaster 8 9 Martin Stanford 10 Jeremy Thompson

Sky Fact Book British Sky Broadcasting Group plc 23 24 British Sky Broadcasting Group plc Sky Fact Book SKY SPORTS HAS BEEN EXCLUSIVELY LIVE In 2004 Sky Sports broadcast the PUSHING BACK THE 35th Ryder Cup, which is the biggest event in golf. Sky Sports first showed BOUNDARIES OF TELEVISED this in 1995 and the exclusively live rights are now held for 2006 and 2008. SPORT SINCE 1991. IT Colin Montgomerie and the European’s sensational victory at Oakland Hills RECOGNISED THE BRITISH attracted a record golf audience for PUBLIC’S INSATIABLE Sky Sports. APPETITE FOR SPORT AND SPARKED A VIEWING REVOLUTION THAT HAS CHANGED THE WAY PEOPLE WATCH IT. TODAY, SKY SPORTS OPERATES FIVE SPORTS CHANNELS WHICH BROADCAST 38,375 HOURS OF SPORT IN 2004, MORE THAN EVER BEFORE. RIGHT FROM THE START, SPORT HAS BEEN A MAJOR FACTOR IN THE GROWTH OF MULTICHANNEL TV. 38,375 HOURS OF SPORT IN 2004 5 SPORTS CHANNELS

Sky Fact Book British Sky Broadcasting Group plc 25 SKY SPORTS IN 2004, SKY SPORTS SHOWED 182 DAYS OF LIVE CRICKET. FACT.

Sky Sports total hours broadcast 1 More than just TV 1991-2004 Sky Sports also offers services through your PC or mobile phone. Skysports.com is 2004 38,375 the UK’s most popular commercial sports 2003 36,432 website offering continually updated news, 2002 33,412 views, information and video. Sky Sports is a subscription service offering 2001 33,337 streamed video highlights of top Barclays 2000 31,847 Premiership and UEFA Champions League 1999 29,188 football games just hours after the final whistle. Sky Sports also works with leading 1998 22,232 2 mobile networks to provide the latest sports 1997 16,248 information, and streamed sports highlights 1996 12,011 to 3G phone users. 1995 9,530 Expert analysis 1994 9,144 Along with the big name events, Sky Sports 1993 6,471 delivers the big name experts. Former star players like Andy Gray and Alan Smith 1992 7,103 (football), David Gower, Ian Botham and 1991 4,278 Nasser Hussain (cricket), Stuart Barnes and Dewi Morris (rugby) and Barry McGuigan To support live coverage, a range of original (boxing) know what it is like to compete It’s live magazine programmes sets out to inform at the highest level and now use their The Sky Sports proposition is built, quite and entertain, including Golf Extra, The experience to provide valuable insight. simply, on providing quality live sport Rugby Club, Boots ‘n’ All and a different throughout the year. About one-third of football show each day of the week. Sky Sports’ total broadcast hours are live and as many as five channels can be offering Choice 3 live sport simultaneously – plus there are Sky has invested a substantial amount in additional live events on Sky Box Office. domestic football alone, through TV rights All sports are presented by experts with an and production. Since its launch, it has intimate knowledge of their sport, and on broadcast over 3,000 live football matches, any given weekend Sky will have 600-700 and the 2004-2005 season will be the most people working on live broadcasts. televised ever. Cricket fans have also benefited. The team has been Sport for all seen live on tour every winter since 1990 Sky Sports covers a wide range of sports and an expansion of airtime has allowed Sky including the nation’s favourites: football, Sports to cover every Test nation live during cricket, rugby union, rugby league, and the winter months. Sky also broadcast live golf – all covered live, in-depth and rugby union every month of the year and will throughout the calendar, at international show all the Lions games in New Zealand and domestic level. However, it is not just exclusively live. In 2004, Sky showed golf major events and the leading leagues that every week of the year with coverage of Sky covers. around 100 tournaments; 157 rugby union matches, 117 rugby league matches; over 4 Sky Sports is also proud to show developing 40 live boxing bills; and 182 days of live sports as well as the grassroots of the cricket as well as 430 live football matches. leading sports. For instance, Sky has featured every single one of English football’s 92 The home of great sport professional clubs, as well as dozens of Sky Sports' new deal with the RFU and non-league teams, and youth and women’s Premier Rugby ensures that Sky Sports has football. And in the last year we’ve also exclusively live rights to England's autumn shown The Horse of the Year Show, internationals and the Zurich Premiership badminton and international netball. until 2010.

26 British Sky Broadcasting Group plc Sky Fact Book Launched in August 5 2004, Football First offers a 55-minute super-cut of each Barclays Premiership match played that day. Fans can choose which game they want to watch.

IN SUMMER 2005, GOING INTERACTIVE 7 Sky Sports introduced the world’s first SKY SPORTS WILL live interactive football in August 1999, with the Premiership match between SHOW EVERY MATCH Arsenal and United, and the OF THE BRITISH service continues to develop. AND IRISH LIONS TOUR allows customers to choose how they watch selected sporting TO NEW ZEALAND events, to select alternative viewing angles, hear an alternative commentary, access 1 St Helens vs. Wigan – rugby EXCLUSIVELY LIVE.FACT. a wealth of statistics, replay match 2 Jason Robinson – England vs. highlights – even choose between live 3AndyGray 4 Four England captains – cricket matches and place bets through their TV. 5 Football First – eight screen options Sky digital customers are able to choose 6 Sky Sports Active between up to eight different live UEFA 7 – Barclays Premiership Champions League matches on one night. Getting to the heart of the action The Sky Sports outside broadcast capability In total, Sky Sports Active has enhanced is second to none and can have 120 staff 11 different sports since its launch: football, working at a live Barclays Premiership cricket, rugby union, tennis, snooker, rugby football match, for example, with a further league, golf, pool, NFL American football, 30 on duty back at the studios. As a team, Formula One and Speedway. their job is to make sure the technology takes the viewer to the heart of the action, through the camera angles, the replays, the sound and match analysis. It is a huge logistical challenge but one the award- winning Sky Sports production team accepts and delivers week in, week out, through 6 over 1,000 different sports outside broadcasts each year. September 2004 was the busiest month yet for live sport, with 130 live outside broadcasts.

Innovative Sky Sports always strives to innovate, GO TO THE WEB: pioneering many broadcast techniques WWW.SKYSPORTS.COM such as super-slow motion replays, multi-camera coverage, virtual graphics, FURTHER READING: interactivity and detailed statistical analysis. SKY SPORTS FACT BOOK

Sky Fact Book British Sky Broadcasting Group plc 27 28 British Sky Broadcasting Group plc Sky Fact Book PREMIERE SPONSORSHIP THE ENDURING APPEAL OF In 2004 Sky supported the UK release of Shrek 2 on and off-air, as well as MOVIES PLAYS A CENTRAL sponsoring the UK-wide Sky charity premieres of the film. Shrek 2 was on ROLE IN SKY’S STRATEGY. Sky Box Office from February 2005. AT A TIME WHEN AN INCREASING AMOUNT OF MOVIES ARE BEING SHOWN ON TV BY MORE AND MORE CHANNELS, SKY MOVIES IS STILL ONE OF THE LEADING MOVIE SERVICES WITH OVER FIVE MILLION CUSTOMERS. 450 DIFFERENT FILMS ON SKY MOVIES EVERY WEEK 200 MOVIES SHOWN IN 2004 ON SKY BOX OFFICE

TM & © 2005 DreamWorks LLC. All Rights Reserved.

Sky Fact Book British Sky Broadcasting Group plc 29 SKY MOVIES SKY MOVIES HAS AN EXCLUSIVE MULTI-YEAR DEAL TO SCREEN THE ACADEMY AWARDS® ON BRITISH TV. FACT.

Audience profile Choice, quality and convenience Q2 2004-2005 Sky Movies is far larger than the UK’s Sky Cinema has two screens that showcase entire video rental sector in terms of movies classic movies from across the 31% 40% 13% watched a week - and in the financial year including iconic films, such as The Night Sky Movies to the end of June 2004, £393 million had of the Hunter, Apocalypse Now, To Kill a been invested on acquiring movie rights Mockingbird, All About Eve and Monty 35%28% 13% for our channels. Innovations such as Python’s The Meaning of Life. Total TV interactivity, true widescreen capability 16-34 35-54 55+ and Dolby Digital 5.1 sound (on our Sky Box Sky Cinema features specific movie seasons Source: BARB/Infosys Office movies) have further enhanced the on acclaimed actors and directors such viewing experience. Other initiatives are as Cary Grant, Charlie Chaplin and Alfred designed to engage and inform the customer, Hitchcock. In addition, Sky Cinema such as star ratings on the on-screen TV is also the home of Sky’s World Cinema guide and information about movies, to strand, dedicated to a twice-weekly double help guide viewers around the hundreds bill of the latest big movies from around of movies on offer. the world – from The Barbarian Invasions to Spirited Away and Zatoichi, alongside Sky Movies top films of 2004: Sky Movies classics such as the La Cage aux Folles 1 Men in Black II Sky Movies shows the whole spectrum and Betty Blue. 2 Spider-Man of recent movies, including almost all of 3 Minority Report the Hollywood blockbusters. There are 5 Daddy Day Care 11 screens to choose from (including two 6 The Bourne Identity Sky Cinema screens) – with the majority of 7 Murder by Numbers movies broadcast in widescreen. Recent 8 Reign of Fire highlights from Sky Movies’ wide range SKY MOVIES HAS 9 Catch Me if You Can include Love Actually, Hulk, , OVER FIVE MILLION 10 X-Men 2 Adaptation, Punch-Drunk Love, X-Men 2 and Bruce Almighty. UK CUSTOMERS. FACT.

CHICAGO 1 The Academy Award® and Golden Globe winning Chicago is currently showing until October 2005, and is just one of the hundreds of blockbuster movies available to Sky customers every week.

30 British Sky Broadcasting Group plc Sky Fact Book 2 SHARK TALE Long Weekends In 2004 Skymovies.com Long Weekends offer movies based on a hosted the official UK theme showing on four consecutive days website for DreamWorks’ from Friday to Monday – with the emphasis blockbuster Shark Tale. firmly on enjoyment for all the family – these include themes like Valentines and Vampires, or films featuring the same actor, such as Tom Hanks or Denzel Washington.

3 5 7

4 6

1 Sky Box Office – Chicago 2 Shark Tale website 3 Sky Box Office – Kill Bill Volume 2 4 Sky Movies – Love Actually 5 Sky Movies – Bruce Almighty 6 Sky Movies – X-Men 2 7 Promos with Sir Ben Kingsley 8 skymovies.com

Sky Box Office movie release news, trailers and reviews, to date to find the 10 Top Tens – the most Sky Box Office shows around 200 films a year, and movie facts and figures. popular films in ten categories shown on including nearly all of the top 100 movies Sky during 2004. The winning films were shown in UK cinemas the previous year. First with the big pictures then screened in January 2005 as part From a film’s general release, it normally Over the years Sky has consistently proved of our special Long Weekends series. takes between six and nine months for its ability to bring a wide range of titles it to be shown on Sky Box Office. Recent from Hollywood and elsewhere. Sky Movies screenings have included Lord of the Rings: now works closely with the major studios 8 The Return of the King, Kill Bill Volume 2, promoting theatrical releases. For example, Monster, Cold Mountain, The Day After Sky partnered with UIP and DreamWorks Tomorrow, Troy and Shrek 2. to create a UK-wide event for the theatrical release of Shrek 2 including substantial The Box Office button on the Sky remote on and off-air support – from an exclusive provides a guide to movies and events, half hour behind the scenes special from which customers can select at will. programme, to Sky charity premieres in The Sky box registers the selection, enables Scotland, and Manchester as well the relevant channel and notifies Sky to add as London. The movie industry as a whole the appropriate charge to the customer’s recognises that Sky Movies is now an next monthly bill. integral part of their business.

Multi-starts Skymovies.com Sky Movies Active offers multi-starts – press Skymovies.com is now a hugely popular the red button on your remote and watch at movie site, offering a one-stop shop of a time that suits you. For instance in January, TV film listings, an encyclopaedic movie customers who wanted to see Bruce Almighty database, reviews of over 40,000 films could select a different starting time every and 1,000 trailers. This year the site, in 15 minutes, and 1.7 million did just that. conjunction with our interactive service, GO TO THE WEB: The red button also brings you the latest conducted our largest voting campaign WWW.SKYMOVIES.COM

Sky Fact Book British Sky Broadcasting Group plc 31 CHANNEL FROM EPIC MOVIES AND WORLD-CLASS SPORT LINE-UP TO BREAKING NEWS AND THE LATEST IN ENTERTAINMENT. ADD PUBLIC SERVICE STATIONS, FOREIGN LANGUAGE CHANNELS, COMMUNITY CHANNELS AND SHOPPING... AND YOU ARE LOOKING AT THE WIDEST CHOICE AVAILABLE, ANYWHERE IN THE UK AND IRELAND.

1 2

BASIC CHANNELS OFFERED PREMIUM, A LA CARTE AND FREE-TO-AIR RADIO BY SKY DIGITAL BONUS CHANNELS OFFERED CHANNELS ON 111 26BY SKY DIGITAL 85DIGITAL SATELLITE

1 National Geographic Channel Sky Travel 80% over the previous year. Sky Travel 2 Sky Sports Holiday information, or even holiday also bucked the trend in the travel industry, 3E4 4 Biography Channel inspiration – and then a travel agent to seeing increased sales year-on-year. book with, all from your living room. That’s what Sky Travel, Sky Travel Extra Sky Ventures and Sky Travel Shop offer. The most As well as our own primary channels, we GO TO THE WEB: famous faces in travel – Clive James, have financial interests in a number of WWW.SKYTRAVEL.CO.UK Judith Chalmers, Loyd Grossman, Bill Bryson other channels that broadcast on our WWW.SKY.COM/VENTURES and Alan Whicker – are your expert guides. platform. These interests are managed by For all the latest special offers subscribers Sky Ventures, which oversees 10 joint venture can simply press the red button to access partnerships covering 14 television and 40 Sky Travel Active or try the website, audio channels. Strategically, Sky Ventures Information correct at time of www.skytravel.co.uk. In 2004, Sky Travel’s enables us to align ourselves with strong going to press – February 2005. total share of viewing rose by a remarkable consumer brands such as ,

32 British Sky Broadcasting Group plc Sky Fact Book TERRESTRIAL TV CHANNELS AND MANY OTHERS USE SKY’S INTERACTIVE 480TELEVISION AND RADIO + CHANNELS CAPACITY TO EXTEND COVERAGE OF THEIR PROGRAMMES. FACT.

3 4

FREE-TO-AIR TV CUSTOMER PAY PER VIEW (PPV) SUBSCRIPTION CHANNELS ON CHANNELS CHANNELS ON DIGITAL SERVICES ON 131DIGITAL SATELLITE 5 92SATELLITE 23DIGITAL SATELLITE

Paramount, National Geographic and UK, although National Geographic and Music Note: In figures shown above: The History Channel. Sky Ventures’ channels Choice Europe both operate across Europe, • have 10 channels which are designed to give us a presence in specific and broadcasts in are counted as one channel. content areas. Nickelodeon, for example, has Australia and New Zealand. In February 2004, • Music Choice Extra (30 channels) been one of the country’s leading children’s we also launched an international version of is counted as one channel. channels since its launch in 1993 and The Sky News, funded by both subscriber and • Sky News is broadcast free-to-air History Channel and National Geographic are advertising revenues, which reaches over but included in basic channels. at the forefront of their own factually-based 40 million viewers across Europe, enjoying • Sky Movies 1 (5 screens) and genres. As a partner, we offer a number of an enviable reputation as a provider of Sky Movies 2 (4 screens) count as high quality resources including advertising breaking news. 9 separate premium channels. sales, cable distribution management, market research, programming, marketing, creative For a full list of the digital channels please services and management support at board see pages 39-40. Based on UK channel level. Sky Ventures remains focused on the line-up.

Sky Fact Book British Sky Broadcasting Group plc 33 SKY MEDIA INTEGRATED ADVERTISING CAMPAIGNS ARE THE FUTURE AND SKY IS LEADING THE WAY.

Sponsorship Sponsorship offers advertisers an effective way to raise their brand profile through association with quality entertainment. Sky has hosted over 100 sponsors, accounting for over 25% of the UK’s broadcast sponsorship sector.

Online Delivering over 236 million page impressions to 6.3 million unique users each month, Sky’s portfolio of websites offers an ideal place for advertisers to reach their target audience. Sky’s online range of solutions for advertisers includes banners, rich media, bespoke co-branded editorial, competitions and opportunities for content sponsorship.

Pub Sports Sky Sports for pubs feed screen that are different from those seen at home, allowing advertisers specific targeting opportunities.

Sky Text Sky’s Text brings customers over 1,000 pages Ford, consistently our largest Major advertisers advertiser, makes full use of As at 2004-05 of constantly updated information. Many our integrated offering. advertisers find banners here a simple and effective means of promotion. Spot Interactive Interactive Ford Motor Company Ford Motor Company Since we launched interactive advertising in Procter & Gamble BMW March 2000, we’ve had over 550 interactive Unilever HSBC campaigns on Sky channels, and now ITV, Reckitt Benckiser Landrover and five are starting to offer Kingfisher COI Communications interactive advertising using the Sky platform. L’Oreal Daimler Chrysler Volkswagen Vodafone Channel offering Universal Music Sony Ericcson Sky Media act as advertising sales Dixons Stores Group Warner Bros. representatives for a host of channels BT UIP Films aside from those wholly owned by Sky. These include The History Channel, National Sponsorship Geographic Channel, Biography Channel, Ford Motor Company Adventure One, Hallmark, Emap and Royal Bank of Nationwide Discovery Networks. Scotland Thomas Cook Domino’s Sky’s viewing panel Nivea Online To help advertisers tap into trends in TV use, Sony Ford Motor Company our research goes beyond demographics to Gillette COI Communications look at consumer habits and interests. British Telecom Pub Sports Coca-Cola GB Effectiveness Diageo Hutchinson 3G For advertisers to feel confident their Scottish Courage Diageo campaign will be successful, we offer proof Ford Motor Company 02 of effectiveness, tailored research and full Nike case studies of key campaigns. Anheuser Busch

34 British Sky Broadcasting Group plc Sky Fact Book SKY INTERACTIVE SKY OFFERS THE GREATEST VARIETY OF INTERACTIVE SERVICES.

CASE STUDY: PHILIPS SONICARE SKY’S INTERACTIVE These portals offer a range of entertaining Feeling their £100 technology content and services, including games, electric toothbrush needed a little more BUSINESS IS betting, dating, horoscopes, retailing, explanation than could be achieved in a email and texting. 30-second TV ad, Philips Sonicare added BSKYB’S FASTEST an interactive competition to their In January 2005 we launched our virtual Christmas campaign activity. GROWING REVENUE car showroom where customers can link STREAM. FACT. to car manufacturers’ current interactive “Almost half a million adults interacted advertising and find out more about new with the Philips Sonicare advertisement cars, order a brochure and request a test on Sky. We achieved record sales figures drive – all through the TV. during the campaign period with a Sky Interactive can help enhance a brand, doubling of Sonicare’s value market a TV programme, a business or a channel, For the duration of January 2005 we were share. The interactive campaign created and engage customers more effectively. able to demonstrate the fund-raising a unique opportunity to interrelate with Every week, millions of customers use Sky capabilities of interactive television, building our consumers and was one of the main Interactive to vote, , shop, learn, play, and delivering the iTV donation service contributors to these results.” email, chat, date, text and more. for the Disasters Emergency Committee’s Earthquake Tsunami Appeal for the David Hughes, Business Manager, Sky Interactive has delivered some of the Community Channel. £1.25 million was Philips Oral Healthcare UK best enhanced TV in the UK. We manage all raised using this site, which was also interactive applications for Sky Channels such accessible from Channel 4, Sky channels, as Sky News, Sky Sports and Sky Movies – UKTV, Discovery and the BBC. for instance allowing customers to predict the winners of The Oscars® in February 2005. Sky Interactive also build, design and manage dedicated advertiser locations to We deliver services for third party channels support interactive ad campaigns. This is such as ITV, Channel 4, five, an area created to meet the bespoke needs and Disney. We have provided the interactive of the advertiser and can include video, solution for Big Brother since the second animation and graphics to extend the series, helping generate over 2 million user customer experience. sessions throughout Big Brother 5.

Sky Interactive also provides the design, operations and technology for the standalone betting and gaming channel Sky Vegas Live funded entirely through interactive revenues.

We operate three interactive TV channels through the on-screen TV guide: , Sky Gamestar and The Betting Zone.

CASE STUDY: CHEMICAL BROTHERS In January 2005, Sky and EMI linked up SKY’S ADVERTISING to give fans an exclusive preview of The Chemical Brothers’ new album Push the REVENUES HAVE Button. Through Sky Active, viewers could CONTINUED TO watch live footage, interviews and editorial features, while five full tracks from the OUTPERFORM THE album were available on an interactive jukebox so fans could hear highlights MARKET. FACT. from the album ahead of the official UK release date.

Sky Fact Book British Sky Broadcasting Group plc 35 1 Accessibility website CORPORATE 2 Corporate Responsibility Review 2003-04 2 3 Sky installers RESPONSIBILITY 4 Chicken Shed performers

WE HAVE DEVELOPED 3 A RANGE OF INITIATIVES DESIGNED TO DELIVER BENEFITS TO EACH OF OUR STAKEHOLDERS. FACT.

Sky is a young company with huge potential for the future. If we are to realise that potential, we have to demonstrate to society at large, by our decisions and actions, that we take our responsibilities seriously.

We have developed a range of initiatives designed to deliver benefits to each of our stakeholders – customers, our people, local communities, suppliers, the environment and our shareholders. Leadership is provided by a Board member visit www.sky.com/accessibility Sky people and senior executives, which we believe Sky is also facing the realities of interactive We know our people will contribute more to is a clear indication of the importance we gambling, working with GamCare to the organisation if they are properly trained attach to it. promote responsible gambling and develop and recognised and provided with a safe and a voluntary code of practice, the first of its healthy working environment. In 2004, we 1 kind. This provides recommended measures introduced the new elected Sky Forum of to tackle under-age and problem gambling. over 65 individuals to represent the views, The Code has helped shape the Government’s ideas and concerns of people from all areas recent draft Gambling Bill. of our business.

We have developed a range of nationally recognised qualifications and have formed partnerships with Scottish Enterprise and SKY RECEIVED BITC’S local colleges to help us deliver over 400 NVQs for our contact centre people. Customers REALISING ABILITY We also struck 40 new partnerships with We want as many people as possible to well-known businesses, offering discounts enjoy Sky. Over the last year, we’ve extended AWARD FOR THE to Sky people, and have spent over the opportunities and choice for disabled UNDERSTANDING £200,000 making adjustments to the customers. Our customers can choose workplace for disabled colleagues. audio-description where provided by the OF DISABILITY broadcaster, and we are committed to Community expanding subtitling on our own ISSUES AND We are committed to making a positive programmes - these significantly increase the difference to the communities in which we value of TV to people with hearing or sight DEDICATED SERVICES operate. Because we are a brand with a loss. Our Disability Strategy was awarded FOR DISABLED strong appeal to the youth market, we focus a Business in the Community Award for our most important community initiatives on Excellence in 2004. For more information CUSTOMERS. FACT. young people, and their families.

36 British Sky Broadcasting Group plc Sky Fact Book Living For Sport OVER 280 TONNES September 2003-04

OF WASTE PAPER 160 WERE RECYCLED 120 LAST YEAR. FACT. 80 40 Baseline Final

Number of times late of times Number 0 A B C D E F G H I J K L M N O P Pupil

Reach For The Sky (RFTS) is designed to Make it Big was our innovative approach our procurement efficiency and were one help people aged 11-19 realise their potential to finding a charity partner. 165 charities of the first companies in Europe to adopt an and currently includes our ‘Living For Sport’ were given the opportunity to have a short e-procurement buyer and invoicing system, initiative and ‘reach’ website. film made about the difference they make which significantly reduced paper invoices, to young people. Ten were shortlisted and saving time and money. We created Living For Sport to develop made into three-minute films shown on confidence and leadership skills in young the Community Channel for Sky people Environment people who are struggling at school. In and customers to vote on their favourite. Our business has an inherently low impact 2003-04, 562 pupils across 42 schools took The Chicken Shed Theatre Company won on the environment, but we recognise the part. Analysis shows that the participants and is Sky’s charity partner for 2004-07. difference our contribution can make. Last and schools taking part have shown real year, we recycled 281.26 tonnes of paper improvements in attendance, punctuality, Sky staff known as Community Champions equal to the weight of 140 elephants and behaviour and personal development. have run the ‘Sky Youth Action Fund’ in saved 1,388 trees. Also, we donated 351 old This year over 250 schools have signed up. Livingston and Dunfermline for three years mobile phones for use as personal alarms and these have now launched in Osterley and to help victims of crime, harassment and Sky’s website for teenagers, Harrogate. The Champions are responsible domestic violence. www.sky.com/reach, goes behind the scenes for managing Sky’s contribution to local of entertainment, media and sport, and events, initiatives and causes – particularly As at October 2004, 100% of Sky’s electricity now has over 75,000 users. It provides those focused on young people. More than needs in England and 20% in Scotland came invaluable advice, support and opportunities £130,000 has been donated so far. from renewable sources. to teenagers across the UK. Our Make a Difference scheme allows Shareholders Sky employees up to 16 hours a year for Sky is committed to creating long-term volunteering in the community and is an shareholder value and in 2004 recorded easy way for staff to make regular payroll an operating profit of £600 million. We donations to their favourite UK charity, which encourage Sky people to become investors This year our Reach For The Sky receives the tax that would have been paid, and last year 40% of Sky people took up initiative won a Business in the as well as the donation. We also supplement the staff Sharesave scheme to save towards Community award for Excellence in staff fundraising activities, matching the purchase of discounted shares. Education and Lifelong learning. them pound for pound up to £600 for our company charity, The Chicken Shed Theatre Company, or up to £300 for any other registered UK charity.

As an integral part of UK broadcasting, we know we can use our influence for good BSkyB is a member of the Dow Jones causes. We were the first platform to carry Sustainability Index and the London Stock 4 the Community Channel – the first dedicated Exchange’s FTSE4Good Index. Membership television and channel for charitable of these indices is limited to companies causes. It attracted over one million viewers that prove they are working towards goals in just over a year. In 2004, we signed up to such as environmental sustainability and the Broadcasters’ Joint Declaration to continue positive stakeholder relationships. our support for the Community Channel and to helping raise its profile. We continue to offer work placement opportunities within our wholly-owned channels.

Suppliers Sky’s philosophy for long-term growth is to use the best suppliers to get the best quality, FURTHER READING: service and value for the business by the CORPORATE RESPONSIBILITY REVIEW 2003-04 most ethical means, and to be transparent and fair in all our transactions. Our suppliers GO TO THE WEB: WWW.SKY.COM/RESPONSIBILITIES are long-term partners, working with us, WWW.SKY.COM/ACCESSIBILITY not for us. We’re also working to improve WWW.SKY.COM/REACH

Sky Fact Book British Sky Broadcasting Group plc 37 MEDIA MONITOR OFCOM IS RESPONSIBLE FOR THE REGULATION OF SKY’S BROADCASTING SERVICES. FACT.

1 Signing on 1 2 Subtitling on Sky One

The Sky platform has over 480 television and content of advertisements and sponsorship, 2 radio channels. Movies, sport, entertainment, and the amount of subtitling, signing and news, public service stations, foreign audio-description. language channels, kids’ programmes, community channels, shopping... and it’s Since its launch, the digital satellite platform all just a press of a button away. has been operated as an ‘open’ platform. This means that broadcasters have been able Ofcom’s licensing and regulatory to obtain technical services from Sky, such functions cover the broadcasting and as listings on the on-screen TV guide and sectors, in relation to Conditional Access (on regulated terms), which it can also exercise competition powers and provide their channels independently under the Competition Act 1998 concurrently of Sky’s Pay TV packages. Third parties have with the Office of Fair Trading (OFT). also been able to obtain the necessary technical services (on regulated terms) to The broadcasting services provided provide interactive services independently by Sky are licensed by Ofcom. In common of Sky. Ofcom is responsible for the with all television licences issued by Ofcom, regulation of the provision of these services. Sky’s licences impose obligations to comply with codes and directions issued by Ofcom. Ofcom’s codes include requirements as to impartiality and accuracy of news programming, requirements as to taste and decency and the portrayal of sex and GO TO THE WEB: violence, restrictions on the quantity and WWW.OFCOM.ORG.UK

38 British Sky Broadcasting Group plc Sky Fact Book GLOSSARY EVERY BUSINESS HAS ITS OWN LANGUAGE AND WE ARE NO DIFFERENT. HERE IS A QUICK GUIDE TO HELP YOU UNDERSTAND THE DIGITAL MEDIA SECTOR.

Sky Premium and Bonus Channels A The Sky Premium and Bonus Channels and additional services: Analogue Sky Movies 1 (5 screens) An analogue signal is the traditional Sky Movies 2 (4 screens) way of broadcasting TV and radio. It may Sky Cinema 1 & 2 have a lower picture quality than digital and Sky Sports 1 & 2 is more susceptible to interference. Analogue Sky Sports Xtra TV services typically offer fewer channels and less scope for interactivity than digital TV. Sky Distributed Channels Television channels owned and operated by third parties, marketed by Sky to Direct-to-Home customers as part of its B Pay TV packages.

Betting Zone Channel line-up This is the Sky Betting and Gaming interactive (As at February 2005) channel. It can be reached by pressing the interactive button on the remote. 26 Premium, à la carte, bonus and additional channels offered by Sky digital Artsworld C Chelsea TV SKY MOVIES COLD MOUNTAIN SKY SPORTS Cable TV Disney Channel +1 ARSENAL vs. MANCHESTER UNITED is received via an underground Film Four cable and a set top box. Digital cable covers Film Four +1 around 50% of UK households with two main FilmFourWeekly digital cable providers: NTL and . Music Choice Extra (30 channels) MUTV Channels: Playhouse Disney Sky Channels Sky Cinema 1 Television channels wholly owned by the Sky Cinema 2 Group, i.e. the Sky Basic Channels and the Sky Movies 1-9 Sky Premium Channels. Sky Sports 1-3 Sky Sports Xtra Sky Basic Channels Sky One Sky One Mix 111 Sky News Basic channels offered by Sky digital Sky Travel Adventure One Sky Travel Shop Sky Travel Extra Animal Planet +1 Sky Vegas Live At The Races (formerly attheraces) Sky Sports News Big Blue Bloomberg Boomerang Flaunt Bravo +1 Cartoon Network Cartoon Network Plus Challenge OVER 480 CHANNELS TO Challenge +1 CHOOSE FROM. FACT. CNBC

Sky Fact Book British Sky Broadcasting Group plc 39 TMF 85 Discovery Channel +1 Free-to-air radio channels on Discovery Civilisation Trouble digital satellite Discovery Health Trouble Reload Discovery Home & Leisure TV5 5 Discovery Home & Leisure +1 TVEi Customer channels UK Bright Ideas Discovery Travel and Living UKTV Documentary 23 Discovery Science UKTV Documentary +1 Subscription services on Discovery Wings UKTV Drama digital satellite DW-TV UKTV Food Adult Channel E4 UKTV Food +1 Alpha EtcPun E4 +1 UKTV Gold ARY Digital E! UKTV Gold +1 B4U Movies UK UKTVG2 Bangla TV Eurosport 2UK UKTVG2 +1 Celtic TV Flaunt UKTV History NASN UKTV History +1 Playboy TV Ftn UK Style PTV Prime FX UK Style+ Racing UKTV Hallmark UKTV People Rangers TV History +1 UKTV People +1 VH1 Sport XXX Babes Jetix +1 VH2 Sony TV Asia KISS VH1 Classic Southforyou Kerrang! Spice Extreme LIVINGtv 92 LIVINGtv +1 Pay Per View (PPV) channels TVX2 LIVINGtv2 on digital satellite TVX3 Magic 61 Sky Box Office screens XXX Housewives Men and Motors 7 18+ channels, Zee Cinema MTV 8 Red adult channels Zee Music MTV Hits 14 other PPV channels Zee TV MTV 2 3 sport channels 18 Plus XXX MTV Base MTV Dance 131 Churn Music Choice (10 channels) Free-to-air TV channels on Sky’s term to describe the rate at which National Geographic Channel digital satellite customers give up (or let lapse) their National Geographic Channel +1 subscription each year. Sky has one of Nick Jr. the lowest rates of churn in Pay TV in Nickelodeon the world at 9.5% (from 1 October - Nick Replay 31 December 2004). Nick Toons TV Paramount Contact centres Paramount Comedy 2 Our contact centres at two sites in Scotland – Q Livingston and Dunfermline – are staffed Sci-Fi 24hrs a day. They are in charge of bringing Scuzz in customers, answering their questions Sky News and solving their problems, as well as Sky One co-ordinating over 1,000 engineers across Sky Mix the UK. Sky Sports News Sky Travel Shop Sky Vegas Live Smash Hits D STAR News STAR Plus Digital Audio Broadcasting (DAB) Sky Travel DAB is the technical standard for the Sky Travel +1 transmission of terrestrial digital Sky Travel Extra radio signals. (UK, NI & Channel Isles) TCM Digital Satellite TV The Amp Sky is the leading digital satellite TV The Biography Channel provider in the UK and Ireland. The digital The Box signal is received via a minidish and The History Channel THE HISTORY CHANNEL Sky box. The digital satellite signal covers WWII IN COLOUR SKY ONE approximately 99% of the UK and offers over The Saint THE SIMPSONS 480 entertainment, news, sports, movies, The Villan © TWENTIETH CENTURY FOX FILM CORPORATION. factual, kids, music and radio channels. ALL RIGHTS RESERVED.

40 British Sky Broadcasting Group plc Sky Fact Book (DSL) This provides a high speed connection over existing telephone networks. It can be used for high speed internet connection and digital television transmission to the home.

Digital Terrestrial Television (DTT) DTT delivers digital television via a conventional aerial, converted through a digital terrestrial TV adaptor. Freeview and Top Up TV are the brand names for DTT services in the UK.

Digital Versatile Disc (DVD) A DVD is a digital disc that is superseding the conventional video tape. DVDs can store a lot more information with a far superior picture and sound quality.

Digital Video Recorder (DVR) DVRs are TV recording devices with in-built hard disk recorders allowing viewers to record TV digitally without the need for video tapes. See also Sky+, page 43.

Direct-to-Home (DTH) The transmission of Sky digital for reception by a viewer with a Sky satellite minidish and THE TOTAL NUMBER OF Sky box at home. HOUSEHOLDS RECEIVING ONE OR MORE SKY CHANNELS NOW Dolby Digital 5.1 STANDS AT 15.7 MILLION. FACT. Dolby Digital can deliver surround sound with five full range audio channels – left, centre, right, left surround and right surround – plus a sixth channel for low frequency effects that F H are felt more than heard in a movie. Dolby Digital 5.1 is available across a range of Sky Financial calendar High Definition TV (HDTV) Box Office and Sky Movies channels via Sky+ Results announcements Sky’s HDTV is on track to launch in 2006. using a compatible surround sound system. Feb 2005 – Half year results It will deliver a picture up to four times May 2005 – Third quarter results better in quality than standard-definition Aug 2005 – Year end results TV and add superior sound quality with E Nov 2005 – AGM and first quarter results full Dolby 5.1 support. Fiscal year Electronic Programme Guide (EPG) The 52-53 week period ending each year on See on-screen TV guide, page 42. the Sunday nearest to 30 June.

Enhanced TV (ETV) Freesat ETV describes programmes that have Sky’s freesat service allows viewers to receive interactive features. Some of the Sky Sports more than 200 channels of digital TV and Barclays Premiership and UEFA Champions radio by satellite without a subscription fee. League coverage is broadcast interactively, To receive this service, customers require a allowing viewers to press the red button Sky box and viewing card. to access alternative live video feeds broadcasting different matches and to call Free-to-air (FTA) up match statistics. ETV applications All Freeview channels and over 100 digital currently available: satellite channels and services are FTA.

• Sky Sports Active – viewers can swap Freeview between alternative action, camera Freeview is the name for the free-to-air Households receiving Sky angles, match highlights, statistics DTT service from the BBC, Sky and Crown As at 31 December 2004, the total number and much more Castle International. Freeview offers over of households receiving one or more • Sky News Active – choose the stories 30 digital television channels, plus interactive Sky channels was 15.7 million. Of these, you want to see from eight screen video services and , through a 7.6 million were Direct-to-Home Sky digital reports, vote on issues of the day and terrestrial rooftop aerial without charging customers. The rest received one or more access text stories a subscription fee. Around 50% of UK Sky channels via cable or digital terrestrial • Sky Movies Active – find out about the big households can receive Freeview. A further television. Digital terrestrial television movies on Sky and at the cinema, catch up 25% can receive Freeview with an aerial homes are estimated by BARB and may on all the Hollywood gossip, check out local upgrade. To receive this service, customers include Sky or cable homes that already cinema listings and book tickets. require a box. take multichannel television.

Sky Fact Book British Sky Broadcasting Group plc 41 I M S

Interactive services Minidish Satellites Interactive services on Sky can be accessed The Sky minidish* is an elliptical shaped The satellites that broadcast Sky’s channels by pressing the interactive button on the satellite dish measuring 530mm x 392mm. are situated 22,300 miles into space at remote control. Digital satellite viewers can It needs to be attached to the outside of a 28.2°E and 28.5°E. We use some of the choose from a wide range of entertaining building to have line of sight to the satellites transponder space for Sky’s own channels interactive services including Sky Gamestar, in space and can be discreetly installed. and services. The remaining capacity Sky Active and The Betting Zone. is subleased to third parties for the Multichannel TV transmission of other channels or services. Interactive television Multichannel TV describes any TV service Digital satellite allows innovative that offers more than the five terrestrial interactive services from both Sky and TV channels. other broadcasters, such as the BBC, Disney and Channel 4, five, ITV, MTV, Living, Discovery and UKTV. These can be accessed by pressing the red button while watching O the channel and allow the viewer to engage with or control what’s on screen. On-screen TV guide Used to navigate around the digital TV SKY DIGITAL’S INTERACTIVE channels. The award winning Sky guide FEATURES INCLUDE EIGHT SCREEN, gives TV listings and information for the VOTING AND DIFFERENT CAMERA ANGLES. FACT. seven days ahead.

Shareholders Breakdown of BSkyB shareholders by type and location as at June 2004:

Fund Managers by Type: News UK Nominees Limited 35.33% Fund Management Groups 34.28% Other 11.32% Insurance Companies 11.04% Miscellaneous Banks 4.06% Pension Funds 3.97%

Fund Managers by Location: P News UK Nominees Limited 35.33% London 27.86% Pay Per View (PPV) USA and 15.01% PPV describes a system for paying to watch Continental Europe 7.90% a recently released film or one-off event, Other 7.79% for example a music concert or sports event. Scotland 4.07% Sky Box Office offers movies and special Rest of UK and Eire 2.04% events on Sky digital. Sky Active Pay TV Sky Active is an interactive channel that Pay TV channels are available to viewers gives viewers access to a daily digest of who choose to pay a subscription fee or magazine style content and lets them a PPV charge. interact using their Sky remote control. Updated daily with celebrity interviews and Personal Planner news, viewers can enjoy a broad range of Available on digital satellite, the services that include games and puzzles, Personal Planner gives viewers the friends and dating services, text, chat and option to set an on-screen reminder for email, NHS Direct, The Lotto and wins, up to 50 programme start times. TV and film news, daily horoscopes, plus much more. Using Sky Active is easy, simply Platform press the interactive button on the Sky A TV distribution infrastructure needed to remote and select Sky Active. deliver TV to the home. The digital TV platforms available in the UK are digital Sky box satellite (Sky), DTT (Freeview or Top Up TV), The Sky box enables customers to receive digital cable (NTL or Telewest) and DSL. digital quality TV pictures and sound. It has

42 British Sky Broadcasting Group plc Sky Fact Book an in-built modem that can be hooked up Sky Ventures A UPGRADE MADE to the viewer’s telephone , enabling In addition to its own branded channels, IN 2004 NOW ENABLES SKY+ VIEWERS TO RECORD SCHEDULED Sky digital customers to order Sky Box Office Sky has a financial stake in many other INTERACTIVE PROGRAMMES – events and access interactive services such TV channels, all of which are shown on A WORLD FIRST. FACT. as email and games. the Sky platform:

Sky channels and investments At The Races 47.5% Sky owns a number of channel brands National Geographic Channel 50% outright, including: Adventure One 50% Sky One, Sky Mix, Sky News, Sky Travel, Nickelodeon 50% Sky Travel Extra, Sky Travel Shop, Nick Jr. 50% Sky Sports 1-3, Xtra & Sky Sports News, Nicktoons TV 50% Sky Movies 1-9, Sky Cinema 1 & 2, The History Channel 50% Sky Box Office, Sky Vegas Live, The Amp, Paramount Comedy 1 25% Scuzz, Flaunt. Paramount Comedy 2 25% MUTV 33.3% Sky digital Music Choice Europe 35.8% Sky digital was launched on 1 October 1998. Biography Channel 50% This new digital service initially ran in Artsworld 50% parallel with Sky’s existing analogue service. Chelsea TV 20% By September 2001 Sky had switched off its analogue signal. Outside the Sky platform, Sky owns stakes in AuraSports (20%), My Kinda Sky Gamestar Place (43%) and Sky News Australia (33%) Sky Gamestar is an interactive channel and provides web streaming services to providing viewers with the opportunity to Arsenal, West Ham, Charlton, Tottenham play a wide range of games every day. It is Hotspur, Manchester United, Everton, packed full of quizzes, puzzles, old classics Leeds, Southampton, Manchester City and new title launches. You play on your own and Chelsea. or link up to Sky viewers and play against them using Liveplay on Sky Gamestar. Sky+ Sky+ is Sky’s (DVR) Sky In-Home Services and is available exclusively to digital The company that co-ordinates the satellite viewers. Viewers have the power nationwide installation of digital satellite to control how and when they watch the systems and manages aftercare service. Sky huge choice of channels they receive on In-Home employs 1,000 qualified engineers. digital satellite. One button recording and simple controls mean the whole Sky Multiroom family can use it. Enjoy different Sky programmes in different rooms all at the same time. Key features include: Keeps everyone happy. • Record television at the touch of a Sky subscriber viewing packages button without video tapes To maximise choice for customers, Sky offers • Plan and digitally record programmes a range of viewing packages to suit every up to seven days in advance household. The Value Pack is available for • Record two different channels just £13.50 a month, giving access to four simultaneously basic channels and 131 free-to-air channels • Record two simultaneous interactive plus 11 audio channels. At the other end of events on the same channel T the scale is the Sky World with Family Pack • Pause and rewind live TV which, for £41.00 a month, enables • Series link every episode of a selected Terrestrial TV customers to enjoy an additional 115 digital series to record automatically Terrestrial refers to the five conventional TV TV, radio and audio channels. The majority • Get the full home cinema experience channels available in the UK: BBC1, BBC2, of Sky customers choose the top packages. with Dolby Digital 5.1. ITV1, Channel 4 and five.

Subscription Top Up TV SKY ACTIVE FRONT PAGE In order to benefit from the full range Top Up TV is a DTT subscription service of channels on offer, a monthly subscription that gives viewers access to an additional is required for both Sky and digital 10 services across eight channels on a cable customers. Both platforms offer pay monthly basis via the conventional a variety of packages to suit all tastes TV aerial and DTT adaptor. and budgets. Transponder Subscriber Acquisition Cost (SAC) A transponder is part of a satellite in space The average amount per new customer that is used to amplify and re-transmit we are investing to grow our customer base. Sky’s signals back to viewers’ dishes.

*A larger dish may be needed in Scotland and Ireland.

Sky Fact Book British Sky Broadcasting Group plc 43 INDEX FIND THAT FACT.

A E M Satellite footprint Sky Multiroom Academy Awards® Enhanced TV (ETV) Make a Difference 15 09, 43 14, 30, IBC 35, 41 Scheme 37 Shareholders Sky News Audio-description F 04, 36, 37, 42, BC 06, 11, 14, 20, 21, 22, 23, 36 Five News Minidish(es) 32, 33, 35, 39, 40, 41, 43, 14, 22, 23 IFC, 09, 11, 15, 40, 41, Signal IBC, BC B 42, IBC IFC, 09, 12, 39, 40 Bafta Football First Sky One 22, IBC 14, 27 Multichannel Signing 02, 14, 16, 18, 19, 38, 39, 01, 03, 19, 22, 25, 41, 38 40, 43, IBC Basic channels Free-to-air (FTA) 42, IBC 32, 33, 39, 43 11, 32, 33, 40, 41, 43 Sky+ Sky Sports Multi-start(s) 09, 11, 13, 15, 41, 43, IBC 14, 25, 26, 27, 32, 34, C Freeview 31 35, 39, 40, 41, 43 Channel line-up 11, 22, 41, 42, IBC Sky+160 IFC, 32, 39 O 09, 13 Sky Sports Broadband freesat Ofcom 26 Churn 11, 41, IBC 01, 38 Sky Active 04, 40 35, 42, 43 Sky Sports News FTSE4Good Index On-screen TV guide 11, 38, 39, 40, 43 Community 37 13, 30, 35, 38, 41, 42 Sky box 36, 37, IBC IFC, 09, 11, 15, 31, 40, 41, Sky The Magazine G Operating profit 42, IBC 11 Community channel Golden Globe(s) 03, 37, IBC 32, 35, 37, 38 18, 19, 30 Sky Box Office Sky Travel Outside broadcast 08, 11, 14, 26, 28, 29, 30, 11, 32, 39, 40, 43 Corporate Responsibility H 14, 27 31, 40, 41, 42, 43 IFC, 36, 37, BC High Definition TV (HDTV) Sky Ventures 09, 13, 41, IBC P Sky Cinema 32, 33, 43 Contact centres Pay TV 30, 39, 43 IFC, 07, 10, 11, 12, 13, I 04, 16, 38, 39, 40, 42 Sponsorship 15, 18, 36, 40, IBC Independent Television SkyCopter 29, 34, 38 Commission (ITC) Pay Per View (PPV) 20, 22, 23 D 23 33, 40, 42 Subtitling Digital channels Sky digital 36, 38 03 Interactive Platform IFC, 09, 11, 18, 27, 32, IFC, 07, 11, 14, 19, 23, 27, 32, 34, 37, 38, 42, 43, IBC 39, 41, 42, 43, IBC Suppliers Digital platform 32, 34, 35, 36, 39, 41, 42, 22, 36, 37 IBC 43, IBC Sky Interactive Reach For The Sky (RFTS) IFC, 35 T Digital Terrestrial Interactive advertising (‘Living For Sport’) Terrestrial Television (DTT) 34, 35 37 Sky Media 11, 14, 33, 40, 41, 22, 41, 42, 43 IFC, 34 42, 43 Interactive services Royal Television Society Direct-to-Home (DTH) IFC, 13, 19, 31, 35, 38, (RTS) Sky Movies V 09, 39, 41, IBC 41, 42 21, 22, IBC 14, 28, 30, 31, 33, 35, 39, Viewing packages 41, 43 IFC, 10, 11, 13, 43 Dow Jones Sustainability Interactivity S Index 10, 13, 19, 21, 23, 27, Satellites Skymovies.com Y 37 30, 39 IFC, 11, 12, 15, 22, 32, 33, 31 Young people 38, 40, 41, 42, 43, IBC 36, 37 Dolby Digital 5.1 30, 41, 43

44 British Sky Broadcasting Group plc Sky Fact Book HIGH DEFINITION TV - SKY’S PREMIUM HIGH DEFINITION THE FUTURE IS COMING SERVICE IS ON TRACK TO LAUNCH IN 2006. A THAT FURTHER UNDERLINES SKY’S INTENTION TO REVOLUTIONISE THE VIEWING EXPERIENCE.

THE FACTS:

GREAT SOUND QUALITY - FULL DOLBY 5.1 SUPPORT.

WILL ENABLE CUSTOMERS TO GET THE BEST FROM THEIR HOME CINEMA SYSTEMS.

THE BEST QUALITY PICTURE FOR FLATSCREEN TVs.

AN AMAZING CONTENT PACKAGE TO SUIT ALL TASTES.

TM and © Twentieth Century Fox Film Corporation. All rights reserved. THE STORY TO DATE 2001 1998 1999 2000

MAY-NOVEMBER 2001 The BBC, E4 and MTV use the Sky platform’s

DIGITAL LAUNCH interactive capacity to extend coverage of Wimbledon, Big Brother and MTV Europe Music Awards. MARCH 2000 Sky shows its first interactive advertisement. AUGUST 2001 Sky introduces Sky+, a fully integrated AUGUST 1999 digital video recorder. Sky shows the world’s first interactive TV football match, Arsenal vs. Manchester United.

DECEMBER 1999 JUNE 2000 Free Sky boxes and Sky launches the help Sky world’s first interactive digital become the TV news service. fastest growing digital platform in the world.

1 OCTOBER 1998 Sky launches the UK’s first digital TV service, offering 140 channels. SEPTEMBER 2001 Sky launches its Sky switches off its minidish dubbed analogue signal. ‘much less obtrusive than older satellite NOVEMBER 2001 dishes’ by Good Sky unveils upgraded Housekeeping magazine. contact centres. CHANGING THE FACE OF TELEVISION IN THE By June 1990 Sky had one million analogue UK AND IRELAND customers and the figure had grown to four million At the start of February 1989, the public in the by the end of 1994. However during, the mid to late UK and Ireland had a choice of four television 1990s Sky invested significant amounts in creating channels and popular opinion was that people its digital platform. This was a big step, not just for wouldn’t pay more than the licence fee for Sky but for the UK broadcasting industry as a whole. television. Then Sky arrived on the scene, doubling overnight the number of channels available. The rest is history. 2002 2003 2004 2005+

FEBRUARY- JANUARY 2005 APRIL 2002 Sky hits its best share of Sky News wins viewing yet, with 9.6% Royal Television of all UK TV households Society (RTS) News in the week ending Channel of the 2 January 2005. Year award for the September 11 terrorist attacks

FEBRUARY-APRIL 2003 JANUARY 2004 MAY 2004 Sky News wins RTS News Sky screens its 500th Sky shows eight live Channel of the Year award live interactive football football finals, including for coverage of the Soham match, Manchester the UEFA Champions murders. Then in April, Sky United vs. Southampton. League for the first time. News wins a BAFTA award Sky One attracts for the same coverage. one million viewers for JUNE 2004 the debut of Nip/Tuck Sky wins Business SEPTEMBER 2003 (pictured above). in the Community Sky reaches 7 million Education and Lifelong customers (three months FEBRUARY 2004 Learning Award. ahead of schedule). Sky Sky News wins RTS sets a target of 8 million News Channel of the OCTOBER 2004 customers by 2005. Sky Year award for the third Sky launches its latest makes its first year of profit year running for the advertising campaign - since its investment in digital. reconstructions of ‘What do you want the Hutton Inquiry. to watch’ A major promotion launches It also wins the RTS to boost sales of Sky+ and Innovation Award for Sky launches Freesat. extra Sky box. its Soham murder trial transcripts. FEBRUARY 2005 The third series of 24 7.6 million DTH customers, premieres on Sky One. an increase of 192,000 in OCTOBER 2002 the quarter. Sky offers three channels as part of Total revenues +10%. the new Freeview MARCH 2004 package. Sky News is awarded the Operating profit before contract to supply five goodwill +25%. with its news service. Profit after tax + 18%. OCTOBER 2003 NOVEMBER 2004 Achieved record multichannel Sky wins an exclusive DECEMBER 2002 audience for the vs. multi-year deal to screen Sky returns to England Euro 2004 qualifier. the Academy Awards®. positive cash . FURTHER INFORMATION SHAREHOLDER SERVICES

For further information on BSkyB’s business Share price information head for www.sky.com/corporate The Company’s share price is broadcast on Sky Text on the Sky News channel on The Investor Centre contains financial page 145, BBC Ceefax page 222 and on information, such as Annual Reports, Channel 4 page 515, all under Interim Results, Management Presentations the prefix BSkyB. It also appears in the and the latest share price. financial columns of the national press.

In the Media Centre you’ll find the latest The latest BSkyB share price is available press releases, the Media Library and from the Cityline Service, frequently asked questions. on 0906 843 4816.

The Corporate Responsibility section Share dealing service contains the current Corporate Responsibility The Company has arranged with NatWest Review as well as online access to all the stockbrokers to provide shareholders with facts and figures about ongoing corporate a single, low cost method of buying and responsibility initiatives. selling its shares. To take advantage of this service, call 0870 600 2050. Communicating with our audiences Sky recognises the importance of Shares online communicating with a broad range of BSkyB’s 24,000 shareholders can also access audiences, and produces a comprehensive their shareholdings online and find a range suite of literature covering virtually every of other services at the Lloyds TSB Registrars’ aspect of its operations. Copies of these Shareholder website, www.shareview.co.uk documents can be obtained from Sky by post or, in most cases, downloaded from Shareholder enquiries the Sky website. All administrative enquiries relating to shareholders, such as queries concerning dividend payments, notification of change of address or the loss of a share certificate, should be made to the Company’s registrars whose address is given below.

Registrars Lloyds TSB Registrars The Causeway, Worthing West Sussex BN99 6DA T: 0870 600 3970

British Sky Broadcasting Group plc Grant Way, Isleworth, Middlesex TW7 5QD England T: +44 (0)870 240 3000 F: +44 (0)870 240 3060

www.sky.com

Registered in England No. 2247735

Produced by BSkyB Corporate Communications, February 2005