Sky is going to resort to the internet in order to reduce the flow of customers to other TV services. From 2019, subscribers will no longer need a satellite dish to receive Sky channels, and customers will be able to use a broadband service.
Jeremy Darroch, Sky’s Chief Executive, said the move was a “big moment” for the business. All 270 channels will be available through broadband.
Sky’s total operating profits in the last six months of 2016 fell by €74 million (£65 million) on a year earlier. Sky’s half-year earnings slipped nine percent after it paid millions of pounds for broadcast rights to Premier League football matches.
Meanwhile, Sky customers will not be able to view 12 TV channels, including TLC, Eurosport and Animal Planet after January 31, amid a fierce row with Discovery over a new deal. Sky claims it has been overpaying Discovery for several years and is not renewing its contract.
More than 11 percent of Sky’s customers moved to another provider in the last 12 months, up from 10.2 per cent a year earlier. However, Sky’s results announced on Wednesday, January 24, showed the group saw a 4.8 percent rise in revenues for the UK and Ireland, with overall revenues 6.2 percent higher than a year ago.