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Sky Deutschland delivers weak ARPU ahead of BSkyB takeover - Venture Insights

Report Overview

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Sky Deutschland delivers weak ARPU ahead of BSkyB takeover

PublisherEnders Analysis.
Publish Date November 7, 2014
Sector Digital Media, Fixed Line (Internet and Voice), Mobile and Wireless Technology, Technology.
Company Sky Deutschland.

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The Sky Deutschland platform, which will fall under BSkyB’s control by mid-November, continues to post strong subscriber growth, thanks to steady gross additions and declining churn.

However, average revenue per user remains flat year-on-year, and declined sequentially for the first time in over four years, raising questions about Sky’s capacity to sustain the recent pace of total revenue growth.

On current trends, cash flow break-even will not happen before the last quarter of calendar 2016, months before the possible price hike from a new domestic football rights auction. Meanwhile, deployment of Sky’s connected TV services appears to be keeping OTT competitors at bay.