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Explosive growth in On-Demand TV services is absolutely fabulous for BSkyB

17:03 30 January 2014

File photo dated 27/01/14 of a Sky television remote control as BSkyB has brushed aside competition from rival BT today as it hailed

File photo dated 27/01/14 of a Sky television remote control as BSkyB has brushed aside competition from rival BT today as it hailed "explosive growth" in its on-demand TV service and a surge of more than 40% in the take-up of products over its Christmas quarter. PRESS ASSOCIATION Photo. Issue date: Thursday January 30, 2014. See PA story CITY BSkyB. Photo credit should read: Chris Radburn/PA Wire

Broadcaster BSkyB brushed aside competition from rival BT as it hailed “explosive growth” in its on-demand TV service and a surge of more than 40pc in the take-up of products over its Christmas quarter.

The group said its advertising campaign fronted by Absolutely Fabulous star Joanna Lumley helped it notch up five million customers for high definition TV in the quarter to December 31, while it saw a record one million connected Sky+HD boxes added in the three months - nearly 11,000 a day.

Higher sports rights and content investment costs weighed on half-year underlying operating profits, down 8pc to £595m, although this was better than expected, sending shares more than 3pc higher.

It added another 110,000 broadband internet customers in the last three months of 2013, despite the challenge from BT, which launched its own sport channels last August offering free Premier League football if customers sign up to a broadband package.

Sky was left reeling after losing out in November on the UK rights to show Champions League and Europa League matches to BT, which paid almost £900m to show both Uefa competitions for three seasons from 2015/16.

Jeremy Darroch, chief executive of BSkyB, said the group was not prepared to pay over the odds for the rights, saying it believes there are “better ways to invest for our customers”.

It announced a new five-year deal for the exclusive rights to the entire HBO TV catalogue, which includes top US shows such as Girls and Game Of Thrones, extending its existing agreement to 2020, having also just secured a new drama pay channel with broadcaster ITV, called ITV Encore, that will launch next year.

The group declined to comment on reports suggesting it has held talks with Vodafone about adding a mobile offering to boost its defences against BT, but Mr Darroch said Sky was “open-minded” about tie-ups.

He said: “Mobile has been something that from time to time we’ve looked at - we haven’t ruled anything out but don’t see it being imperative for the business.”

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