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    Sky+HD passes 1 million homes after record growth

    This is a discussion on Sky+HD passes 1 million homes after record growth within the Sky news and announcements forums, part of the SkyUser Announcements category; 5 million homes now enjoying the control and flexibility of Sky+ Sky today announced that the total number of Sky+HD ...

    1. #1
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      Sky+HD passes 1 million homes after record growth

      5 million homes now enjoying the control and flexibility of Sky+


      Sky today announced that the total number of Sky+HD customers has passed the 1 million mark for the first time after record sales in the first three months of 2009. The growing popularity of high definition (HD) TV has also contributed to the continuing rapid growth of Sky+, which comes as standard with all Sky+HD boxes. Including the Sky+HD customer base, Sky+ is now in more than 5 million homes, almost one in five of all homes in the UK and Ireland.

      With growing consumer demand for the richer, more immersive experience of HD, an ever expanding HD content line-up and a new everyday low box price of £49 for new HD subscribers, the number of Sky+HD customers grew by 243,000 in the first three months of 2009. This represented a five-fold increase on the rate of growth in the same period of the previous year.

      By 31 March 2009, the total number of Sky+HD customers stood at 1.022m, up from 465,000 a year earlier. The success of Sky+HD and Sky+ contributed to continued growth in Sky’s total customer base, which grew by 80,000 to 9.318 million in the quarter.

      Sky launched the UK’s first national HD service in May 2006 which has since become Europe’s most successful HD service. Today Sky+HD customers can watch 33 HD channels from leading brands such as Sky Movies, Sky Sports, Channel 4, Disney, MTV, BBC, Discovery, FX, Sky1 and National Geographic. Sky+HD customers can choose up to 400 hours a day – or 12,000 hours a month – of quality HD content, which is significantly more than any other TV platform.

      Other trends and key facts from the quarter


      • Sky enjoyed its biggest ever HD audience with 300,000 viewers tuning into watch Sky Sports’ live HD coverage of the Carling Cup final between Manchester United and Tottenham this quarter.
      • Data shows that time shifted viewing from the Sky+ planner accounted for 17% of all TV viewing for all individuals in the 5 million homes with Sky+.
      • Across all Sky+ homes during the quarter there were an average of 16.4 million instances of time shifting each day, resulting in around four instances of time shifting per Sky+ home daily.
      • This equates to an average of 1 hour and 5 minutes of time shifted viewing in each of those homes each day.
      • This quarter, St Trinians on Sky Movies was the most popular piece of content on Sky Anytime, which was watched by a quarter of a million homes.


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    3. #2
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      Re: Sky+HD passes 1 million homes after record growth

      Wow £10,000,000 a month from HD Subs alone

      Mike

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      Re: Sky+HD passes 1 million homes after record growth

      If they are all paying the full package costs.

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      Re: Sky+HD passes 1 million homes after record growth

      Don't forget Sky are taking a hit on the price of the box, and if they are all new customers, it would have cost Sky £30,000,000 just to get them installed.

      And that's if they only paid the installers £30 a go, which I am fairly sure is not the true rate, its more likely to be higher.

      Factor in the cost of the HD equipment needed, staff, overheads etc - I bet they don't make that much off HD at the moment.

      Obviously once the customer has had HD for some time, then Sky would make more profit per customer.


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      Re: Sky+HD passes 1 million homes after record growth

      But the £30mill is a one off cost for sky, the £10 x 1mill subs for the HD sub is monthly, so its £30mill one off cost vs £120,000,000 first year income.

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      Re: Sky+HD passes 1 million homes after record growth

      Plus subsidising a million boxes at over £200+ each = £200,000,000+. It will still take a couple of years to get the investment back.

      TomD


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    8. #7
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      Re: Sky+HD passes 1 million homes after record growth

      Yep, long game in play at moment, Sky know they stand a good chance of making money on HD, will just take time to recoup the initial losses.

    9. #8
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      Re: Sky+HD passes 1 million homes after record growth

      Quote Originally Posted by Isitme View Post
      It will still take a couple of years to get the investment back.
      That's nothing, 2 year payback is pretty damn good. The life insurance industry relies on custeromers having the product for about 5 years before they start to make a profit on the sale.

    10. #9
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      Re: Sky+HD passes 1 million homes after record growth

      Quote Originally Posted by PaulSky View Post
      If they are all paying the full package costs.
      Not really, the £10,000,000 per month is purely from the HD subs, or rather it will be £9,750,000 now due to the reduced vat rate - I would say that most of the people who have had HD for more than 12 months, are prob still subscribing to the HD pack, and obv, all of those installed in the last 12 months have to keep their subs to it...

      Not sure how many households actually have Sky in the UK, but the financial figures, on the basis of HD alone are pretty huge!

      I can't see a HD box costing sky £200 wholesale, not with the number of them it's getting through... Not sure what the manufacturing costs are, but if I can buy a mini laptop for £150 from Sainsburys, then I'd say Sky will be paying nowhere near £200 per box...

      Mike

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      Re: Sky+HD passes 1 million homes after record growth

      Don't forget the development costs and the initial tooling.

     

     
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