British broadcaster Sky has unveiled plans to offer its TV
service without a satellite dish for the first time, opting
instead for an IP solution.
Sky’s premium Sky Q service will be offered
over broadband as well as satellite for the first time in the
UK in 2018, the broadcaster said. IT will then expand to Europe
Sky, which also offers broadband services, did not share
much detail about the internet driven Sky Q offering, but the
move appeared to be driven by increasing churn rates.
It will offer Sky TV’s full 270 channels
through a broadband connection, opening up the service to an
estimated two million new customers. There are currently around
600,000 Sky Q boxes in use in the UK, according to Sky.
It will mean greater demand on broadband networks, although
a Sky Q box already demands a broadband connection. According
to Cisco, global IP video traffic will be 82% of all IP traffic
by 2020, up from 70 percent in 2015. Internet video to TV
grew 50% in 2015.
According to its latest financial results, Sky saw the
number of people leaving to competitors rise to 11.6% – up from
10.2$ last year.
The Sky group – which is subject to an £11.7
billion takeover bid from 21st Century fox – posted a
9% dip in profits to £679 million, despite a 6% rise in
revenues to £6.4 billion during the final three months of
Jeremy Darroch, group chief executive of Sky, said: "In a
year in which we are absorbing significantly higher programming
costs, as a result of the step up in Premier League costs, our
financial performance has been good."