Project I made for a consultancy agency for their client SKY

1. The market is changing
Broader audiences are turning to OTT and spend
more time watching content on demand. The
number of subscribers of traditional TV services
and cable is decreasing. TV still remains strong
and it looks like consumer favour an hybrid model
between linear TV and OTT.
Lots of competition on the SVOD market between
well established platforms (Netflix, Prime Video…),
new well-funded entrants (Disney+, Apple TV+…),
and smaller platforms (The Criterion Channel,
MUBI…) that creates an audience fragmentation
It won’t be a winner takes all as households
subscribes to multiple SVOD services.
Of consumers who use
pay TV or video
streaming services
weekly watch 2+ hours
of paid-for streamed
content daily1
43.3%
65%
Of households who
uses SVOD platforms
have subscribed to two
or more SVOD services
As more platforms enter the market, there is a
clear risk of subscription fatigue and the rise of
more price sensitive audiences.
Devices that streamed % total TV viewing hours
OTT content only 1.0%
Linear TV only 7.0%
Both linear and OTT content 92%
Of which linear TV captures 68%
Of which OTT captures 24%
What’s showing on connected TV’s10

2. What SVOD market is
traditionally focused on
Content deliver,
licensing rights
What social media & gaming
companies are focused on
Behaviours, community, socializing
around entertainment
TV & SVOD platforms are also challengedby social media and gaming on
entertainment
“We competewith(andloseto) Fortnitemore
thanHBO”
ReedHastings –CEONetflix,Q42018 Shareholder
Letter
55%
Of gamers in the UK
said that video games
have taken time away
from their other
entertainment activities4
What social media offers:
Free never-ending stream of UGC
content powered by video-centric
algorithmically fueled platforms
What gaming offers:
Rich, self-expressive, immersive,
creative, emotional-fulfilling and
social environment
60%
Of Gen Z and
Millennials in the US
say they spend more
time watching user-
generated video
content than they do TV
shows and video
streaming services4
“Rich trovesof userdatapower algorithmsthatcontinuouslyrefinethemselvesto get the most compellingandengaging content,
ads,and recommendeduseraccountsin frontof the right audiences.Inessence,thecontentdiscoversyou” – Deloitte,Digitalmedia
trends16th edition:TowardtheMetaverse

3. 8th most famous brand in UK5
Own SVOD service NOW
VR technologies through SKY Immersive and SKY
world
SKYQ platform to display owned/third-party/free-to-
air channels, apps, owned/third-party streaming
services
Own hardware (SKY
Glass, SKY Q…)
Own content produced
through Sky Studios
Sports rights commitment to broadcast major
leagues such as Premiere League, Bundesliga,
Formula1, Cricket, Football Champion’s League…
Exclusive rights for film and television with HBO,
Paramount, Warner Bros and NBCUniversal
Well implemented in other EU countries (Italy,
Germany, Ireland and Austria)
7.83 millions subscribers
in UK7
What are SKYTV strengths
Customers Hardware /
technologies
Content Brand
SKY TV generated the lowest volume of pay-TV
complaints per 100,000 subscribers in Q3 20216
100 channels in UK on the basic package + more
paid, including entertainment, sports, movies,
news…
Strong brand portfolio of 36 owned channels and 126 channels in total

4. Piracy of content programming including live sports is easily done
Market highly regulated
highly dependent on advertising revenues which
can fluctuates due to loss, seasonality, or
unforeseen events related to broadcasting rights
Cost of content on sports rights is very high and a
loss of it has a significant impact on churn
(example: loss of the Serie A in Italy)
Content creators can launch their own SVOD
platforms, therefore could stop licencing content to
SKY
High level of competition between cable TV
operators, paid-for and free-to-air programming,
other satellite television providers content
aggregators, home entertainment products
companies, and other suppliers and providers of
sports, entertainment, news and information that
deliver DTC and other OTT streaming services.
Increasing competition
from social media and
gaming
Supply chain of components for hardware products
have been and may be further disrupted
Dependency on third parties for infrastructures (ex: satellites for TV
transmission)
What are SKYTV weaknesses
Competition
Hardware /
technologies
Costs/
Revenues
Others
Success of content is dependent on customer tastes
and preferences that often change in unpredictable
ways
Studios revenues
fluctuates and are
seasonal

5. SKYSWOT
Strength Weaknesses
Opportunities Threats
- A solid base of customers
- A content powerhouse
- A powerful tech company
- A strong brand
- A lot of competition
- Highly dependent on advertising revenues, thus on viewership
- Dependent on other companies for its hardware/infrastructures
- Lots of potential for growth between its existing customers, its
hardware/platforms/technologies, its content produced
- Market is changing from traditional TV to SVOD
- More competitors entering the market
- Competition for entertainment with social media and gaming
- New competitors chasing sports (Prime Video with the French
Ligue 1, TikTok with 6 nations)

6. 5 ways to grow for SKY
New business models
01 Increase investments
02 Reach new audiences
04 New revenue streams
05
Platform consolidation to
offer more and better
content bundles to
increase viewers, gated
content through pricing
tiers or ads supported
subscriptions to attract
and avoid churn from
price sensitive
subscribers
Production of original
content, actual and new
talents, sports
broadcasting,
technologies (broadband
services, platforms,
devices…), content
partnerships
Long term growth is likely
to plateaued in UK for
established platforms (it
has already started in
US3) so there is a need to
try to reach new
audiences, particularly
younger cohorts where
SVOD competes with
social media and gaming
Shoppable ads, in-
movie/in-game branded
purchases, paid social
experiences, virtual
goods to reinforce
fandom and better
experiences
It’s all about the consumer: better experiences, better content, ease-of-use, pricing…
Convert customers
03
Move existing TV
customers to an hybrid
offer of linear TV and OTT
offer, including SKY’s own
SVOD platforms to avoid
churn

7. Convert customers
Reduce future churn by using a mix of bundles, limited time discount, free for limited time as a reward or offers that includes
SKYQ or SKY Glass to encourage people to switch from a classic TV SKY package to one that includes OTT platforms
phoning
Email
Automated email flows Custom audiences on
Meta
Twitter tailored
audiences
Google customer
match
Custom audience
programmatic email ads
Custom audience
programmatic ads
Others
Mailing
OTT/CTV custom
audiences ads

8. Reach newaudiences
Raise brand awareness, brand loyalty at a young age, reinforce SKY position as a tech brand. The best way to look for these
new young audiences is to look at social media and gaming.
TikTok + Youtube
Focus on owned
content to attract
people. The catalogue
of TV and movies is one
of the main reasons for
subscribing to an OTT
platform9 and the
virality of Tiktok and
Youtube’s algorithm can
help reach people
beyond your own
subscribers. Trailers and
video clips here can
help to reach new
potential subscribers
Twitch
Invest in content, including
livebroadcasting sports, talkshows with
influencers and celebrities around
subjects like sports, cinemas, TVs…,
talkshows with SKY journalists…
Invest in e-sports through sponsorship of
players, teams, tournaments
Look at other ways to promote your
brand inside Twitch such as sponsoring a
channel, in-game advertising

9. New revenue streams
Tap into fandom to increase visibility of SKY’s own shows, diversify SKY’s revenue, reduce dependency to advertising revenues, increase retention…
Merch sales
Virtual experiences
Selling branded items (Apparel, collectibles, goods) through SKY’s own e-commerce platform, retail… Looking at new technologies, for example
having the ability to pause a movie and buy products visible on-screen or having an overlay at the end of a movie/series that shows you related
products to buy…
NFTs Selling basic art NFTs related to TV shows and movies, character ownership’s rights (ex: DeadHeads) NFTs tied to advantages such as exclusive
access to content or movie premieres (ex: Stoner Cats only viewable for NFT holders – total sold: $8m), NFT tickets for cinema…
Keep developing VR experiences such as VR movie/TV rental/subscription (ex: BigScreenVR), partnerships with video games on content (ex:
screening of Christopher Nolan’s movies in Fortnite)

10. 1. Kantar, “Media trends and predictions 2022”
2. BARB, “BARB releases Establishment Survey data for Q4 2021”
3. Hannah Avery, “Fight to retain subscribers heats up as streaming growth stalls in the US”, Kantar, November 3, 2021
4. Deloitte, “2022 Digital media trends, 16th edition: Toward the metaverse”, March 28, 2022
5. YouGov, “The most famous brands (Q1 2022)”
6. Ofcom, “Telecoms and pay-TV complaints: Q3 (July – September) 2021”
7. Mediatel, “SKY and Virgin media forecast to lose 1.6 million tv subscribers”
8. Kantar, “Global paid video streaming trends”
9. Statista, “Reasons for using Netflix, Amazon Prime Video and Now TV in the United Kingdom (UK) in 1st quarter 2018”
10. Comscore “Entertainment in 2022: The behavioural trends in the UK that are shaping the consumption of online music, video and OTT”
Sources