At IBC, Amsterdam
Speaking at IBC in Amsterdam this morning, Gidon Katz, the director at Sky’s OTT Now TV service, revealed that an impressive 90% of Sky Now customers were not only first timers to Sky but had “never even considered” getting the premium pay-TV package before opting for the OTT option.
Dismissing the threat of cannibalisation almost altogether (Katz described it as having “minimal” evidence to support it), Katz stressed that, rather than soaking up Sky customers that might otherwise abandon the premium service for OTT alternatives, Sky Now has introduced Sky to an almost entirely new customer base.
“By carefully segmenting the proposition we’re able to feel we have the best premium experience and the best OTT experience,” he explained, “and we’ve been able to get new customers into the market. The results for Sky show that not only have we had our lowest churn rate for eleven years but have also grown our customer base at the fastest rate for eleven years.”
Asked about the cross-selling statistics among these new Sky customers, Katz was again very positive.
“We are seeing increasing levels of cross sale. More people, as they get comfortable with over the top delivery, become more comfortable with spending more money. Maybe you came on to watch Game of Thrones, and now you want to watch Arsenal-Manchester United. You’ve got the trust from seeing Game of Thrones that you’re going to be able to see the ball – and that it’s worth paying for versus trying to find some kind of pirate network.”
Sky’s Principal Streaming Architect for Internet TV Ben Forman will be appearing at this year’sContent Delivery World (5th – 7th October, 2015, Radisson Blu Portman Hotel, London)