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Sky's profits increase by 20% to £1.025bn; lowest churn rate in 11 years...
i4u
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The Sky's the limit....
Pay-TV broadcaster Sky has reported a 20% rise in operating profit helped by strong demand across Europe.
Sky said operating profit for the nine months to the end of March was £1.025bn, up from £854m a year earlier.
Across the group, Sky added 242,000 net new customers in the third quarter. That was almost 70% up on the same period a year earlier.
The rise takes Sky's total number of customers across Europe to 20.8 million.
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I know, I'm quite happy with a combo of Netflix and iTunes for everything, works out a lot cheaper to see what I want.
I suspect that churn has reduced because we now accept that tv is something you pay for, and that we've got used to paying for the dross to get the sport. It's not ideal but it works as a business model.
Not right now, but don't rule out a bid from them at some future point in time.....without Sky or Virgin's infrastructure costs, they could be very competitve. But this is probably something for the 2020s, rather than now
Probably as 'cannibalism' is seen as the biggest threat for Sky, that is new customers choosing Now TV over Sky subscription also existing customers switching to Now as a cheaper option.
An expert says the money SKY makes from each user has been stuck at £47 a month including phones, broadband and television. The reason it is said to have stuck is because of customers opting for NOW TV which means Sky is generating less money per user than from those old premium Sky customers.
They set up a contract and offer you a deal so you accept then increase even though the contract is in place. How can they keep getting away with their stupid behaviour for a service which simply isn't worth it.
Also how many people are paying different prices for the same service?
When is the law going to change?
Yes, Now TV is included so it's the combined total of Now + Sky subscribers.
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It would be interesting to see the figures for Sky TV only.
It has been noted above that ARPU is now just about flat but I think the main reason for this is the rise in non-TV customers (ie broadband / phone only) which obviously have massively lower ARPU. These customers represent a growing % of the total customer base so they are depressing average customer ARPU (ie TV customer ARPU may well still be rising a fair bit - and I think this is almost certainly the case).
It's also worth noting that Sky is not even reporting its TV customer numbers any more. It has been noted above that a while ago they started combining the DTH TV number with NOW TV. But from December 2014 they have completely stopped reporting the total TV number at all. So all we now have is the total customer number (ie including non-TV) (**)
So in terms of analysing how they are doing I think we are really now down to revenues and costs (and obviously the resulting profits). They are still reporting these to the same level of detail as before (and splitting them between UK, Germany and Italy) (***).
OK, we still have the numbers for total customers and products but without any breakdown of these I don't think they provide much of use. Though I think the churn numbers (still available) continue to be of interest.
Finally I guess we should note that really all businesses boil down to revenues and costs. To take just one example Tesco doesn't report customer numbers and nobody would even bother to think about that metric.
In the past the KPIs enabled us to understand in a lot of detail the individual drivers behind Sky's performance - but I'm afraid those days have now gone.
(**) In fact this quarter they reported TV customer growth but not the number of TV customers at the end of the quarter. But they will not be reporting this figure every quarter so it will no longer be possible to track the cumulative total.
(***) Note that from now on they are only producing a full Profit & loss Account at the half and full year - so there was no P&L Account in the Q3 numbers announced this week (though they did provide "headline" revenue and profit numbers; but no full breakdown of revenues and costs into their normal components).
No its not, Have you seen how many channels is on Freeview these days?
Which was a very misleading comment. It is not an extra rise but that they brought forward the usual annual change from September to June. The reason for which is no doubt that they do not want the increase to coincide with the start of the Champions League, as BT Sport will be taking over coverage of it then.
I think that the fact that they appear to be throwing out money off deals like confetti will also have impacted on the ARPU.
Some were (are?) offering 12 months at half price etc. These aren't only given to new customers, but to customers calling to cancel outside of contract.