Sky to launch new internet TV service
BSKYB will welcome non-customers to its online collection in an attempt to tap into the 13m UK homes that do not subscribe to its pay TV packages.
BSkyB, in which Rupert Murdoch owns a 39 per cent stake, yesterday reported a £601m adjusted operating profit – a 16 per cent increase – for the first six fiscal months.
First-half revenues reached £3.36bn, up six per cent on the previous year.
Sky makes an average of £544 a year from each of its 10.47m customers. However, the 40,000 net new customers to join Sky in the second quarter was considerably below last year’s intake of 140,000.
Sky will open its online library to consumers without a dish to become the latest entrant in the streaming on-demand war, where Netflix and Lovefilm dwell on the frontline.
By this summer, viewers will be able to pay monthly or on a pay-as-you-go basis for Sky’s on-demand service, without signing a contract.
The broadcasting group declined to comment at this stage on pay or content, but said films – followed by sport and entertainment – will be available on a range of devices including tablets, smartphones and consoles.
The flexible offering will allow customers to dip into the Sky experience if the full package does not entice.
Sky chief executive Jeremy Darroch said: “Alongside the continued growth of our satellite platform, this will be a new way for us to reach out to consumers who love great content, but may not want the full Sky service.
“Bringing a distinctive, new choice to the marketplace will help us meet the needs and demands of an ever wider range of consumers.”
This follows the announcement earlier this week that ITV Player catch-up services are now available on Sky Anytime+, to be joined later this year by BBC iPlayer.
Sky also announced it will create 1,300 new jobs in the UK and Ireland over the next two years.
Shares in BSkyB closed up four per cent at £6.90 yesterday.
Netflix shares dropped five per cent.