Connected quarter at BSkyB

October 17, 2013 08.56 Europe/London By Julian Clover

Sky Studios wind turbine BSkyB’s emphasis on its On Demand services have taken the total number of connected Sky homes to 3.4 million.

Around 50,000 customers a week are upgrading their receivers, with either Sky’s adaptor or the new Wi-Fi capable set-top, as revenues grew by 7% to £1,843 million.

However, the increased cost of Premier League rights pulled the quarter’s operating profits down 8% to £285 million.

Amid relatively low churn of 11%, CEO Jeremy Darroch cautioned on any link between the development of On Demand, and improved customer loyalty. “Our experience over a long period of time is that the more products we get in customers homes then the stickier they tend to be, and certainly advocacy is a big part of our business, so we get products like On Demand into our customers homes there tends to be a ripple effect as they talk to their friends about that,” he said. “The one thing you have to be careful about when talking about a new product is that the earlier adopters tend to be the most loyal anyway.”

Sky has seen a fourfold increase in weekly usage of its on demand service. There has also been an expansion in the breadth of the offer with 6 new channels added in the quarter, and an increase of 25% more hours of TV Box Sets.

Unique users of Sky Go increased in the quarter to a new high of 3.3 million unique users compared with 2.7 million in September 2012.

Sky Broadband has also grown its take up; surpassing 5 million customers in the quarter.

As of September 30, 2013, BSkyB held 11,224,000 retail and 3,617,000 wholesale customers in the UK and Ireland.