BSkyB reaps the rewards of investment in connected TV

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    BSkyB is reaping the rewards for its investment in connected TV. The company now has 4.4 million connected Sky+HD DVRs installed out of a total television customer base of 10.5 million homes and added 1 million of these during Q2 of 2013 alone. The company says it is now Britain’s biggest connected TV platform, “and with millions of customers yet to connect their boxes, there is still a big opportunity ahead.”

    Notably, in its end-December 2013 half year report, BSkyB declares: “We have seen positive benefits from higher customer satisfaction and advocacy from those customers with a connected Sky+HD box relative to the overall base. Meanwhile, investment in expanding our On Demand service and raising awareness of its benefits is driving upsell to higher-tier packages.”

    Jeremy Darroch, Chief Executive at BSkyB, comments: “Everything that we see tells us that customers love the benefits that come with the connected box. On Demand usage more than trebled year on year and the number of movie rentals through Sky Store [the transactional VOD service] doubled as customers responded to greater flexibility and choice.”

    He added that more customers than ever are choosing Sky Go (the TV Everywhere offering) to watch content both in and out of the home. “We continue to see significant opportunity for accelerated growth and returns.”

    BSkyB outlined its connected services investment and says it has “pressed forward with our plans to grow our business and create value by driving adoption of our new connected TV services.” The company invested approximately £40 million in the first half of the financial year, the majority of which was variable and the result of strong customer demand, comprising hardware (wireless connectors, WiFi-enabled set-top boxes and NOW TV boxes), additional content for Sky Go and the On Demand offerings, and promoting awareness of the connected services. “We are already seeing clear benefits from this,” the company emphasized.

    The NOW TV boxes are a good example of how Sky is prepared to invest in securing its position and possible future revenue growth. These are available for just £10, which is an unprecedented price for a quality streaming device (which is manufactured by Roku, whose Roku 1 is on Amazon today for £52 and in the bricks-and-mortar UK retailer Maplins for £60).

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