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Versatile multiproduct strategy: Sky fiscal Q1 2011 results - Venture Insights

Report Overview

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Versatile multiproduct strategy: Sky fiscal Q1 2011 results

PublisherEnders Analysis.
Publish Date October 24, 2010
Sector Fixed Line (Internet and Voice), Pay TV, Sports.
Company Sky Group.

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A switch in marketing focus from HD to home communications and sports appeared chiefly responsible for a record quarter in multiproduct take-up, with the biggest increases being registered in broadband, telephony and line rental.

Although Q1 2011 net HD take-up halved against the previous quarter, partly reflecting reduced emphasis in marketing plus the World Cup factor, there is abundant room for growth and we expect a strong Q2 as Sky enlarges its HD offer with the ITV digital channels, and prepares for the launch of Sky Atlantic HD in early calendar 2011.

The exceptional leap in home communications product sales underlines Sky’s competitive strengths against the rest of the sector using its existing LLU platform, suggesting Sky is under little pressure to sign up to BT’s more expensive high speed broadband access product.