Sky CEO Jeremy Darroch has told a Deutsche Bank Media Conference that the UK trading environment is going to get worse before it gets better.
Darroch said that Sky’s core product remained relevant to customers during the recessionary period and this was being seen by pay-TV operators around the world. “By focusing on products like Sky+ and our high definition product we’ve been able to get that to resonate with customers and get the best value out of the subscription.”
Reviewing the start of Sky’s recent HD campaign that has seen the price of the Sky+ HD receiver slashed to £49 (plus an ongoing £10 fee), Darroch said that he was pleased with the progress, which resulted from the patience that Sky had put into the product. “It resonates more with existing customers and takes itself a while to establish with new customers. The nice thing about HD for us is that not only does it help us reach our target of 10 million new customers by 2010, but it is so strong in our existing customer base.” He reiterated that the £10 monthly charge to HD customers would be maintained and said Sky would instead put more value into the tier through VOD and other content.
Darroch confirmed that the new version of the Sky EPG would be rolled out to Sky+ and Sky+ HD boxes from the end of the month.