Sky to up marketing spend as it gears up for BT battle

BSkyB is gearing up for its battle with BT by announcing an increase in marketing spend to showcase the mobile and subscription services it hopes will differentiate it from its fierce rival.

sky tv

The media company says it will up spend to push the expansion of mobile offering Sky Go, which will see 10 more channels added in September and the recently launched subscription multi-device download tool Sky Go Extra. 

The announcement comes as Sky releases results for the 12 months to 30 June showing the company in robust health. Increased take-up of paid-for services by existing customers, in particular internet connected Sky+HD boxes, on-demand downloads and Sky Store “video rentals” drove the average annual amount customers pay for its products up to £577 and revenue up 7 per cent in the period. Operating profit increased by 9 per cent to £1.3bn.

The results come less than a week before BT launches its Sport channel. BT has invested heavily in obtaining the rights to show 38 Premier League matches a season and marketing its new offering. It is looking to grow its lead in the broadband market by offering BT Sport, which launches 1 August, free to broadband customers. BT revealed yesterday (26 July) it has signed up 500,000 households to BT Sport.

Sky responded to the May announcement of BT’s pricing strategy by launching campaigns highlighting its own offers. It also launched a multi-million campaign starring David Beckham earlier this month to push its range of services.

Spend on marketing increased to £1.1bn in its last fiscal year, up from £1.06bn in the previous year although the company claims the outlay was down as a percentage of sales. 

The company’s investment in marketing has been reduced in recent years as it switches focus from acquisition to retention and upselling.

Sky also today (26 July) announced the launch of the NOW TV Box, which it says converts a TV into an internet-connected ‘smart’ TV. The box, which will cost £9.99, delivers the internet as well as its online-only offering Now TV over broadband to TV.

Recommended

Muppets-Royal-2013.304

The best, worst and just plain audacious Royal baby marketing

Ronan Shields

Last year provided an orgy of marketing around both the Olympics and the Jubilee, meaning 2013 poses little by way of marketing opportunities by way of comparison. Many brands are therefore making the most of the birth of the future heir to the throne and the results are not always regal.   

Comments

    Leave a comment

    Close

    Discover even more as a subscriber


    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now