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Fact Book 2005 1

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Fact Book 2005 1 FACT BOOK 2005 1. SATELLITE 4. SKY MINIDISH 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 new 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 telephone 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 I 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 INFORMATION: 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 TELEVISION. 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 Broadcasting Group plc, one of the largest companies in the UK, with shares listed on the London and New York Stock Exchanges. The Company’s activities are subject to regulation by Ofcom (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 SKY ONE. 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 heart 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 SKY NEWS 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 SKY BOX OFFICE 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 DIGITAL TELEVISION. 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.
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