Sky is 'recession resistant'

Sky CEO Jeremy Darroch has predicted that the UK trading environment is going to get worse before it gets better. Darroch told a financial conference that Sky's core product remained relevant to customers during the recessionary period and this was common to 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 (E54) (plus an ongoing £10 fee), Darroch said that he was pleased with the progress. "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. The new Freesat platform has many free HD channels.

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