News
Feature-packed Sky Q to launch on 9 February; company reports 5% growth in 1H revenue.
Sky on Friday shared details of its new TV service Sky Q, and announced that James Murdoch will reassume the chairmanship of the company.
The U.K.-based triple-play provider also reported financial results for the first six months of its financial year, and launched a new set-top-box (STB) for its streaming service, Now TV.
Sky Q, which will be available from 9 February, comprises a range of products – including STBs, a WiFi router and an app – that combine to give customers greater control over their viewing experience.
For instance, with the ‘Fluid Viewing’ feature, a user can pause a show on one device, whether it is a TV or tablet, and pick up where they left off another. Depending on the type of package, customers can record up to four programmes simultaneously and watch a fifth. Recordings can also be downloaded to a tablet for offline viewing.
With Sky Q, Sky is also giving greater prominence to customer service.
Customers will have access to a dedicated U.K. call centre, and will receive free servicing and fault repair. Sky technicians will also visit every Sky Q customer to carry out a full installation.
One-off set-up costs start at £99. The entry-level Sky Q bundle will cost from £42 per month, while the Sky Q Silver bundle – which enables customers to watch TV in more rooms and on more devices, as well as record more channels simultaneously – will cost from £54 per month.
"We wanted to completely re-imagine TV, making it flexible and seamless across the screens in our lives," said Stephen van Rooyen, chief marketing, sales and digital officer at Sky. "With Sky Q and Fluid Viewing that’s exactly what we’ve done – giving people the best TV tech on the market today, at a really accessible price. We think people will love it."
Sky also unveiled some new hardware for its contract-free streaming service Now TV. The new STB brings together Sky’s premium, on-demand content and 60 live free-to-air TV channels.
Now TV is also rolling out a new user interface that recommends content, and curates popular shows available on catch-up TV players such as the BBC’s iPlayer.
The new STB is due to go on sale later this year; Sky said the price will be announced at a later date.
First-half flyer
Also on Friday, Sky reported fiscal second quarter and first half results.
Sky generated revenue of £5.72 billion (€7.51 billion) during the six months to 31 December, up 5% year-on-year. The performance was driven by its U.K. and Ireland, and Germany operations, which recorded growth of 6% and 10% respectively. This offset a 3% decline in revenue at Sky Italia.
The performance drove first half operating profit up 12% to £747 million.
"We have had another very strong half as we continue to transform Sky, broadening our business and expanding into new markets and customer segments," said Sky CEO Jeremy Darroch. "This strategy is delivering today and opening up significant growth opportunities for the future. We are pursuing those opportunities with energy and purpose."
At the end of its fiscal second quarter, Sky had 25.69 revenue-generating units (RGUs), up from 25.34 million in the previous quarter, and from 24.84 million a year ago.
Sky’s U.K. and Ireland retail customer base grew to 12.28 million from 11.75 million a year ago. In the hotly-contested fixed broadband market, Sky recorded net additions of 144,000 in the U.K. and Ireland, giving it a total of approximately 5.9 million.
Murdoch returns
Meanwhile, Sky also announced that James Murdoch will become chairman of Sky.
Murdoch stepped down from the position in April 2012, when Sky was still called BSkyB, amid the phone-hacking scandal at the News of the World. The now defunct newspaper was published by News International, which was at the time also chaired by James Murdoch.
Murdoch succeeds the man who replaced him in 2012, Nicholas Ferguson, who has been a board member at Sky since 2004.
"Sky continues to grow impressively, to innovate with wonderful products and to serve its customers to the highest standard. So now is the right time for me to step back. I am sure that the company will continue to prosper," said Ferguson.
"I am proud to have been asked by the board to serve as chairman of Sky, one of the world’s leading pay TV companies," Murdoch said. "Jeremy [Darroch] and the team at Sky have done an outstanding job in building a dynamic and successful company. As chairman, I look forward to working with the board and management as they continue to deliver a great service for Sky’s customers and create value for all shareholders over the years to come."
