Everyone's Watching
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British Sky Broadcasting Group plc Everyone’s watching Grant Way, Isleworth, Middlesex TW7 5QD England Telephone +44 (0)870 240 3000 Facsimile +44 (0)870 240 3060 www.sky.com Registered in England No. 2247735 A digital vision for everyone Contents Introduction 01 Introduction Remember when your television was part of the furniture? 02 Overview 06 Our achievements When it sat in the corner of your living room – and your 08 Everyone’s watching 12 Customer culture life – presenting a limited choice of programmes from a 14 Programming overview 26 Channels on digital satellite 28 At a glance broadcasting establishment that had turned complacency 30 Watching everyone 32 The challenges ahead into a fine art? “Take it or leave it,” they told the British public. When Sky offered an alternative, millions of people took it to their hearts – and left traditional broadcasters stunned. In twelve exhilarating years, we have transformed the television from an inanimate piece of furniture into an irresistibly positive force in people’s lives. We are now close to the very heart of 21st century living. Once labelled a downmarket upstart, Sky’s achievements have given it a firm footing in the broadcasting landscape. But its embrace will never stifle its pioneering spirit. Invention and creativity, entertainment and challenge remain our guiding principles. At the heart of our culture lies an uncompromising commitment to understanding what people want – then delivering it. We are passionate about the potential of digital television. After all, it is the tool we use to make every day extraordinary for every one of our customers. Twelve years ago, Sky changed the face of British broadcasting overnight. Today, everyone’s watching as we build our digital vision. 01 A digital vision for everyone Overview Sky has revolutionised the way British people relate to television. That is not a question for debate. It is a matter of fact accepted by the broadcasting establishment, our competitors, industry commentators and analysts alike. The only people who do not accept the fact are Sky customers. They celebrate it. Indeed, the public’s endorsement of Sky’s vision has been the critical factor in our transformation from maverick upstart to broadcasting thoroughbred. Had we not given the public what it wanted in such emphatic style, the establishment would still be arguing that the British public was simply not ready for choice, service and quality. But Sky’s progress has persuaded the cynics to accept the weakness of its argument – and respect our strengths. Touching people’s lives Our principal strength is our talent for touching so many lives in so many extraordinary ways. Over the past twelve years, our track record of innovation and creativity has transformed people’s relationship with television from a one-way, love-hate affair into an exciting, enriching, two- way pleasure. Look at the way we revitalised the nation’s sporting obsession. Before Sky started broadcasting English Premier League matches in 1992, terrestrial channels barely managed 20 live matches annually. Sky News Active and Sky Sports Extra: pioneering From 2001, Sky Sports will show 66 live English the age of interactive television. Premiership games per season. We have also worked “...it's this wonderful virtuous circle whereby if you’ve our make-over magic on numerous other sports; notably got the right content then you’re going to attract golf, rugby and cricket. people to your base; and if you attract people to your base, if your base gets bigger, then you’re able to attract more content. It just keeps going round and round and round.” Tony Ball, Chief Executive 02 03 A digital vision for everyone We are determined to build a digital vision for everyone. So far, we have invested over £2 billion in realising that vision. As we win more and more people over, our people send e-mails, shop on screen, play screen games, select continue to win more and more honours. And our success their own camera angles, bookmark their favourite channels, is not confined to sport. Sky consistently wins praise for lay bets and manage their finances. One day, everyone will the quality and originality of its drama, documentaries and take this sort of versatility and choice for granted. For entertainment programmes. Sky One and Sky Movies are televisions are no longer inanimate boxes. Instead, they are leaders in their field. So is Sky News, whose reporters already a gateway to a diversity of digital services. have come to symbolise Sky’s immediacy, authority, The professionalism of our customer service representatives is fundamental to realising professionalism and maturity. our digital vision for everyone. Customer service We may lead the digital race, but our competitors are This was not always the case. Many of us riding the already in hot pursuit. And they have the talent and By the end of 2000, we had convinced over crest of today’s wave vividly remember the early 1990s resources to make a good scrap of it. What gives Sky 5 million DTH subscribers to share our vision. as we struggled to find our feet in a hostile media and a winning edge is its devotion to serving customers’ needs. Together, they enjoy an unprecedented choice of channels – over 300 in total, 80 of our own. broadcasting environment. Weekly losses hit £11 million, This quality has already given Sky a significant advantage the knives were out, the prognosis was grim. But we over its competitors by helping to keep churn levels at stuck defiantly to our founding vision: to be the first, to below 10% – the lowest in the industry. There is still room be the best, to see beyond the horizon. for improvement. That is why Sky continues to channel so much investment into reinforcing and enhancing their A digital vision for everyone customer service infrastructure. One lesson learnt is that Sky is determined to build a digital vision for everyone. winning the hearts and minds of customers is fundamental. So far, it has invested over £2 billion in realising that vision. Serious money, and it has been worth every penny. Future perfect Embracing digital technology has re-ignited our pioneering Sky will never compromise on building a digital vision for spirit, providing a platform from which we can touch even everyone. Or be satisfied with what it has achieved so far. more lives in even more extraordinary ways. We are impatient to keep innovating, creating, entertaining and challenging. And this time everyone is watching. Millions of Sky digital subscribers now enjoy a world of Sports fans can even place bets from their armchairs, thanks to the interactive innovation invention, creativity, entertainment and challenge. Over of Bet TV. 5 million people now share our digital vision. Together, they enjoy an unprecedented choice of channels – over 300 in total, 80 of our own. Digital satellite viewers can also enjoy a range of other digital services that allow them to 04 05 A digital vision for everyone Our achievements Since our launch in 1989, we have achieved an unbroken succession of breakthroughs as we continue to revolutionise the face of British broadcasting. 1989 1990 1991 Sky television launches its UK Sky reaches 1 million UK homes. 1 million UK BSkyB streamlines its nine direct to home service with a four- British Satellite Broadcasting (BSB) channels into a five-channel channel network. The customer launches; then Sky and BSB merge homes reached network offering from BSB and contact centre opens in Livingston, to form British Sky Broadcasting Sky: Sky Movies, the Movie Scotland. (BSkyB). Channel, Sky Sports, Sky One and Sky News. 1992 1993 1994 1995 BSkyB secures exclusive rights to Sky multi-channels launches with £13 million Sky announces a £13 million BSkyB enters the FTSE 100 index. screen FA Premier League football a package of 14 channels at basic investment in British films, The number of subscribers to matches live. subscription level. investment in including a major output Sky channels across all platforms deal with British Screen. exceeds 5 million. A second British films customer service centre opens in Dunfermline, Scotland. 1996 1997 1998 October 1999 May BSkyB secures a contract for 6 million BSkyB reaches a long-term Sky digital – the UK’s first digital Digital launch with Sky digital is confirmed as the exclusive live coverage of FA agreement to provide programming television service – launches with world’s fastest digital TV launch Premier League football until the households on the new digital terrestrial service, 140 channels of news, sport, 140 channels ever, with 551,000 sales by end of the 2000/2001 season. to be operated by British Digital documentaries, movies and 3 May 1999. Over 6 million households now receive Sky Broadcasting. entertainment. receive Sky channels across channels all platforms. 1999 June 1999 August 1999 October BSkyB launches its free dish and Free dish & Sky Sports Extra launches, offering Open launches an interactive box offer with a one-off standard the world’s first live interactive television service offering a range installation fee of £40 for Sky digital digibox offer football coverage. of shopping and email services; subscribers. This offer reflects Sky’s information, games and determination to remove any barrier entertainment from leading names, preventing people from sharing its such as WH Smith and Dixons. digital vision. 2000 February 2000 March 2000 May Sky Sports extends the interactive The Royal Television Society Sky Sports Extra wins the Royal Sports innovation viewing experience to include awards BSkyB its highest honour, Television Society’s Sports England’s home games in the the Gold Award for outstanding Innovation of the Year award. of the Year award Six Nations rugby championship.