BSkyB's basic premise: give customers what they want – when and how they want it. New Media is providing all that and more with breakthroughs in e-commerce, interactive television for news and NEW MEDIA sport, mobile phone links and on-line betting. skysports.com sky.com Sky leads the way in providing sports Sky’s website regularly ranks in the top ten of information on-line. the most visited sites in the UK. As BSkyB continues to evolve into value of Sky content across these In July 2000, BSkyB agreed to applications for WAP and interactive the UK’s premier media company, its platforms. In the UK, skysports.com increase its shareholding in Open television platforms are expected to success will be built on its strength is a leader in sports content, news from 32.5% to 80.1%, subject to provide a significant source of value and ability to manage content from and traffic, while Sky News On-line regulatory approval. The Company for Sky New Media. origination through to delivery. By is a front-runner in on-line breaking plans to build on Open’s early creating and packaging content for news. Sky.com/one promotes Sky success to introduce enhanced Even before the acquisition of Sports distribution across an increasing One’s entertainment programming applications that will increase the Internet Group, Sky had one of the number of consumer devices, to reach new audiences on the web. range and quantity of e-commerce UK’s most popular sports websites BSkyB is aiming to capture both services. Usage will be encouraged and it had been consistently growing the narrowband and broadband BSkyB is investing increasingly in new by provision of more compelling in popularity, with 420,000 visitors media markets in the UK. The goal technology applications, building on content as new participants are to the site in March. Skysports.com is to be the branded content leader, its record of innovation and enterprise. brought onto the platform, a wider also made its mark through ground- providing universal access to its A Wireless Markup Language (“WML”) range of services and an improved breaking live coverage, including a information across multiple devices based Internet browser will be look and feel. Open has scope to live webcast of the England vs. and platforms. downloaded into every digital satellite work with old and new broadcasters, Scotland Euro 2000 qualifying game set-top box installed so far, giving all high street stores, e-tailers and in November 1999, the first time a The vision for new media is simple Sky subscribers access to a secure others, to create a strong new live football match had been shown and compelling – to have Sky content environment containing Internet revenue stream and long term value. on the Internet in the UK. available wherever and whenever content. No additional hardware is consumers want it. Current initiatives required. This will support the move skysports.com In addition to its technology are aimed at capturing value from from analogue to digital text and BSkyB has been carefully investing initiatives, Sky has innovative new customers through e-commerce, provide the basis of numerous in content and commerce partners, media relationships with sports subscriptions, advertising and interactive services. expanding its reach and services organisations spanning both sponsorship opportunities in order to on-line customers. In May 2000 narrowband and broadband. These to maximise return to shareholders. Open – interactive television BSkyB agreed its first major Internet include an arrangement with the The intention is for BSkyB to be a Since its launch in Autumn 1999, acquisition with the all-share offer West Indies Cricket Board to produce UK commercial leader in on-line Open has become the largest for Sports Internet Group for its website and develop revenue- news, entertainment and sports. e-commerce platform in the UK with approximately £250 million. enhancing opportunities, deals with access to nine million people through This purchase brought with it an several football clubs, and a strategic BSkyB’s New Media division was television sets in over 3.6 million experienced management team investment in Sportal, an international created in November 1999, homes. In June 2000, 1.6 million and agreements with football clubs provider of sports content. formalising BSkyB’s commitment homes used Open. Open homes to build their websites, develop to developing expertise in emerging use the service an average of seven e-commerce opportunities, as well The Sky Sports 24-hour sports news technologies aligned with its television times each month and spend as ownership of Opta, the statistical channel now called skysports.comTV businesses. The efforts of BSkyB’s 17 minutes each visit shopping, analysis service, and the Surrey has also co-ordinated content with focus on delivering traffic, advertising banking, contacting friends, playing Sports Group, which provides the Sky Sports website. and revenue between Sky’s television games and accessing information. both offline tele-betting and on-line channels and new platforms such as There are over 900,000 registered betting facilities. These services the web, mobile Internet, digital text e-mail users, making Open one are already being integrated into and interactive TV. New Media of the UK’s top five providers skysports.com. On-line betting explores ways to maximise the of e-mail. through surreysports.com betting Open In October 1999 Open was launched and in just nine months has become the largest television based e-commerce platform in the UK with over 900,000 registered e-mail users. British Sky Broadcasting Group plc 30 Operational Review New Media Sky’s new media strategy is to develop Sky plans to introduce a Wireless Markup and distribute our content across multiple Language (“WML”) based Internet browser devices and platforms and to monetise into every existing digital satellite set-top the traffic through e-commerce advertising box, giving all customers access to a and subscription. secure environment containing Internet content. This browser will allow Sky Text to offer e-commerce and information across all of Sky’s channels. Sky News Active The launch of Sky News Active offers digital viewers the chance to select the stories they most want to see. Sky News on-line As well as providing entertainment Other attractive commercial Open’s services. It will look and feel Sky News’ excellence in live breaking content on the website, niche opportunities arise out of BSkyB’s consistent with the Sky website and coverage also extends to its up-to- content is being strengthened for on-line partnerships and equity incorporate live video feeds, betting the-minute on-line news service. phased launches from October investments in key players in services and other interactive products. Numerous big stories aired on 2000. A comprehensive on-line collective purchasing, games, music, Sky News have been covered on entertainment offering based around books, toys and the teen market. Sky mobile skynews.com with a fresh slant, the Sky One broadcast channel In July 2000, Sky launched a mobile including the Afghan airliner is planned to offer an enriched Distribution of content Internet service, sky.com/mobile, hijacking, the Budget and the experience to key audience BSkyB is expanding its narrowband offering instant breaking news and Paddington rail disaster. In covering demographics such as kids, teens, presence through the re-launch of up-to-the-minute sports information breaking news, we are regularly faster 16-24s, comedy and sci-fi fans. sky.com, a comprehensive portal. from Sky News’ and Sky Sports’ than our rivals. The aim is to build communities Sky is also continuing to develop award-winning teams of journalists. around each site corresponding its current ISP service. This is a key The service is distributed via Orange’s Sky News makes a feature of tapping to key programming by creating element in the strategy of driving WAP portal and discussions are into its ‘punter-power’. Ever since tailored propositions for the groups. customers to PC-based Sky content. under way with other network the Kosovo crisis, when thousands There will also be an enhanced Some Sky content is also currently operators. BSkyB intends to enhance of e-mails were received daily, the Sky One highlights site offering being distributed via the Excite and its mobile content offer during the Internet has proved a powerful link programme information and on-line TDL Infospace Internet portals. course of 2000 and to incorporate between viewers and journalists. The entertainment. Most content will leading edge applications and Your Call programme gives viewers be provided through joint ventures. In the broadband era, BSkyB expects services, including audio on demand. a voice on-air and on-line and the to provide popular content to mass on-line poll has been a success story skymovies.com markets so customers can access Sky’s digital satellite platform can which has generated both its own Plans are taking shape for a movie content on any device they choose, deliver many different revenue editorial content and thousands of site offering everything on film-related with particular focus on mobile generating services. Pay television votes each week. topics from channel information applications, television, PCs and PDAs. was just the first. Now the Group and listings to a comprehensive As the Company makes the shift from is readying itself to develop and Sky entertainment movie database and on-line cinema multi-channel to multi-service, new distribute its content across multiple Showbiz Weekly, Sky’s on-air ticket purchasing. services are planned and existing devices and to monetise the traffic entertainment magazine supplies services will be enhanced. through e-commerce, advertising sky.com with exclusive interviews Commercialisation of services and subscription.