Sky Italia – Harvard Business School th Milan, 15 July 2015 Gomorrah 5 • Serving 21 million Sky customers in five countries 21 million • Shared ethos of increased choice, better content £11 billion and superior TV experience Countries Customers • Leveraging best-in-class capabilities £4.6 billion Revenue • Substantial opportunity Content • Good for customers and shareholders 31,000 investment Employees 30 2 Main sites Subscribers Revenues EBITDA Employees Source: Company data for FY14. Financial data as reported in BSkyB full year results announcement 3 • €18 billion: investments in Italian economy • €32 billion: direct and indirect effects on Italian economy produced by Sky Italia investments • c. 4.000 Sky Italia employees, with a broader employment impact estimated at 13,000 workers 4 DTH IPTV OTT DTT 5 5 Partnership Sky – Telecom IPTV 2.0 • Mirroring DTH offer and experience with IPTV offering delivered via TI broadband/ ultra-broadband network • Identified 1m+ prospects without access to satellite • Targeting 3.5m TI BB customers who do not have Sky • Live from April 2015 and already starting to show some momentum 6 • Launched April 2014 • Pricing options in two packs: – series €9.90, cinema €19.90 • Sport TVOD • Opening up new market segments (young, heavy digital users) and resonating strongly with customers • Live events and original production driving appeal (X Factor, Gomorrah) • In May launched Sky Online TV Box, a new way to watch Sky Online content on TV 7 • Cielo launched in 2010 and SkyTG24 launched in 2015 • Consistent with objective to capture all growth opportunities in the TV landscape • Strength in FTA supports pay TV strategy: – Ability to cross promote pay TV offering – Provides second monetisation window for original productions • Create ability to purchase content rights even when FTA visibility is mandatory 8 Great Content Innovation Focus on Customer 9 Sport season 2015/2016 PROPERTIES FOOTBALL • Unbeatable offer of live football next SERIE A WITH 132 EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE MATCHES year including exclusivity of 132 Serie A matches and all Serie B matches EXCLUSIVE EXCLUSIVE EXCLUSIVE EXCLUSIVE PROPERTIES OTHER SPORTS • F1 and MotoGP engines will continue to roar on Sky EXCLUSIVE • Next year events include Rugby World Cup and EuroBasket 2015 EXCLUSIVE EXCLUSIVE 10 Italy’s leading movies service • Exclusive deals with 4 out of 6 Hollywood majors – Disney, Fox, Paramount and Sony • Excellent movie offer with over 2,000 titles per year – 4x more movie premieres than competition • Strong Italian movies offering plus Sky Cinema original production • 12 HD channels and successful use of pop-up/event channels: – Bond channels, Oscar channels, Star Wars, Monsters Attack, Christmas channel, Disney Princess • All movies in HD, On Demand and available on Sky Go • Over 70% of customers take movies proposition – Thor among highest level in pay TV industry 11 • Widening offer with branded channels in key Sky Branded Channels & Original genres Productions as key differentiators • Sky Uno is only pay channel in the world to show exclusive franchises such as: – X-Factor, Italia’s Got Talent, Masterchef, Masterchef Junior, Hell’s Kitchen • Exclusive agreement with HBO – backbone of Sky Atlantic • Creating successful track record in original commissions • No 1 Arts channel in Italy • Exclusive deal with Fox giving strong portfolio: – FOX, Fox Life, Fox Crime, Fox Animation, Fox Comedy, Nat Geo, Nat Geo People, Nat Geo Wild) 12 Examples of recent home-grown productions: • Gomorrah distributed in over 100 countries all over the world. 1992 presented at the Berlin Festival and simultaneously aired in the five countries in which Sky operates Upcoming projects: • The Young Pope and Diabolik – La Serie. Two projects accounting for over 40-million-worth estimated investments in Italy Sky Arts Production Hub to be based in Milan • Sky’s first European project meant to increase the value of excellences from the various territories. 13 2006 2012 2014 – 2003 2010 2013 2015 14 15.