BSkyB adds 74,000 TV customers in Q3
BSkyB television subscribers were up 74,000 in the three months to March, according to the company’s latest financial report, released today.
The figure, which is well ahead of forecasts, is more than twice the growth recorded last year. However, growth in customers signing up for Sky broadband dropped by more than a third.
Pre-tax profits were recorded at £793 million for the nine months to March 2014, down from £966 million the previous year.
In the reported period, the company connected 600,000 new Sky+HD boxes to take its connected base to five million. The internet-connected set top box enables customers to download programmes directly – whilst allowing Sky to direct more relevant advertisements to viewers via Sky AdSmart.
Launched in a bid to improve effectiveness for existing advertiser clients, AdSmart is also attracting new advertisers to TV by giving them the ability to run targeted campaigns across Sky and third party channels.
BSkyB has said that of the 100 advertisers that have run AdSmart campaigns, half are new to Sky and around 20% had never previously advertised on Sky.
BSkyB also doubled the number of hours of titles available on-demand, as it looks to build upon its Box Sets offering, which BSkyB said has resulted in consumption of on-demand content growing “rapidly”.
Weekly downloads were three times higher in the third quarter compared with a year ago – equating to each connected household downloading on average three pieces of content a week – with on-demand viewing now accounting for more than 5% of viewing in connected Sky homes.
“Our investment in connected TV services is delivering results,” said Jeremy Darroch, Sky’s chief executive.
“Almost 50% of Sky homes are now connected and this is transforming their viewing experience: connected customers are watching more TV, they’re more loyal and they’re more likely to recommend Sky. Our expanded Box Sets service has been particularly popular with a fourfold increase in viewing of top titles like 24 and Game of Thrones.
“We are making good progress in developing new revenue streams. Our targeted advertising service, AdSmart, is attracting many new advertisers to Sky while our new Buy & Keep service in Sky Store opens up the DVD purchase marketplace for the first time.”
Commenting on the results, Mark Errington, CEO of OASYS, said: “The figures go to show that despite streaming businesses like Netflix and Amazon Prime beginning to commission their own content, the traditional linear TV schedule remains the cornerstone of consumers viewing experience – with shows like Game of Thrones and Mad Men leading the way for Sky in particular.”
Errington added that although the range of services now available to consumers gives them the opportunity to consume TV content in new ways, the focal point of the living room remains the TV and its daily schedule.
“What many commentators continually forget is that everything evolves from traditional, scheduled TV – consumers record shows from it and there is no VoD without it,” he said.
“Linear TV builds brands and is a starting point for consumers to engage with the range of other services now available to them.”