Sky hints at promoting phone and HD products

BSkyB could increase cross-promotion of its broadband, telephone and television services as the media company nears its 10 million customer target.

Sky acquired 96,000 new customers in the three months to 30 September, bringing its total base to 9.956 million, according to its latest quarterly results.

The media company issued a statement that hinted at a cross-promotion push, saying there is “significant headroom” with 7.7 million (77%) of all customers yet to take all three of its services.

“With each broadband customer making a positive contribution, the economics of growth are attractive going forward,” it says.

Sky has already launched a number of marketing campaigns this year, which have helped it register its highest take-up of broadband, telephone and line rental, with 50% of Sky’s new customers in the third quarter signing up for its “three-play” service, a 36% rise on the previous quarter.

Analysts Jeffries International says that satellite TV is reaching saturation point, and Sky’s focus is now likely to switch to cross-selling additional products, such as HD, telephony and broadband.

Sky has continued to invest heavily in marketing to drive customer acquisition. The latest results showed a 23.8% rise in marketing spend, up £58m to £302m since September last year.

Marketing makes up 24% of its operating expenses, only narrowly beaten by its programming spend of £482m, making up 38%.

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