UK broadcaster BSkyB has been vindicated in its efforts to broaden its appeal by offering over-the-top services to both existing and new customers, reporting strong results for the third quarter of this year despite little movement for its satellite TV service.
The number of unique users for its ‘Sky Go’ service (available to existing satellite customers) rose 75% year-on-year in the period, and the company confirmed that it plans to add Sky Sports content to its other online video service ‘Now TV’ (available to anyone in the UK with a broadband connection) by the end of this year.
Meanwhile, the number of subscribers for its satellite TV service remained relatively flat, reaching 10.308mn, although growth was stronger for its multi-room services, with the number of customers rising 5% to reach 2.243mn.
Total revenues across all operations reached GB£ 1.715bn (US$ 2.77bn), up 4% year-on-year, while EBITDA rose 3% to reach GB£ 392mn.
Editor’s view: This will be welcome news to BSkyB, a company with a history of innovation in the UK media market that is now attempting to find new growth areas in the face of market saturation for its premium pay-TV services.
The market for pay online video services is getting very crowded though – Netflix entered the UK earlier this year, there are well-established services from the likes of of LoveFilm and Apple, and major retailers are now getting involved, including groceries giant Tescos and electronics chain Dixons Retail.
Most recently, Domino’s Pizza decided to grab a slice of the action, launching a “pizza+film” offering earlier this week.