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Sky UK Sales Continues To Climb Despite High Customer Churn (Cancellation Proportion)

Fears of a big bill for German football rights and an increase the rate of customers abandoning their satellite TV subscriptions have sent Sky shares sliding, despite the company's continued sales and profits growth.

 

The media giant sank to the bottom of the FTSE 100 leader board after reporting third-quarter results that showed its focus on marketing its most expensive Sky Q packages meant more bargain hunters went to rivals such as BT in the three months to the end of March. At lunchtime the shares were down more than 5pc.

Churn, the closely watched measure of subscriber attrition, rose to 10.7pc in the UK, from 10.2pc in the prior quarter and 10.1pc in the same period last year.

 

Sky said the rise was driven by a switch in marketing focus towards the new Sky Q service and away from discounted television and broadband packages. The company also turned away some subscribers who asked for discounts in order to renew their contracts, as part of a focus on improving average revenue per customer. It has been stuck at £47 for a year and a half.

 

Jeremy Darroch, Sky’s chief executive, said he was not concerned by the rise in churn, arguing it has become a less important measure of performance as the company has expanded internationally and into services such as broadband and its Netflix rival Now TV.

“I did feel at the end of last year that the UK market was pretty promotional and we’ve rowed back off that,” said Mr Darroch. “We’ll see a bit more of that in the fourth quarter and then we’ll be through that.

“I’m very happy with where we are with churn but it’s only one part of the mix. I think it’s less important as a metric than where it was six or seven years ago.”

Despite the increased rate of attrition, on home turf Sky added 70,000 new customers, broadly in line with City expectations. The launch of Sky Q in February added £15m to the company's marketing costs.

 

But in spite of an increased level of customer churn, Sky met analysts’ financial expectations and reported that group revenues rose 5 per cent to £8.72bn over the nine months to March.

 

The company, which operates in the UK, Ireland, Italy, Germany and Austria, said it experienced “good trading” across all its markets. In total, the company added 177,000 new customers in the third quarter, taking total sky customers base to 21.7m.

 

Operating profit increased 12 per cent to £1.14bn over the nine-month period.

Shares in Sky fell more than 4 per cent to close at 985p after the trading update on Thursday.

Jeremy Darroch, chief executive, said:

“It’s been another strong quarter for Sky. Our promise of world-class content, commitment to innovation and brilliant service is persuading more customers to join and stay with Sky, in every market.”

 

However, customer churn — the proportion of customers who cancelled their subscriptions — was higher than analysts had expected. In the UK and Ireland, Sky’s biggest market, churn was 10.7 per cent in the three months to March, compared with 10.1 per cent in the same quarter in the prior year.

Mr Darroch said the increase in churn in the UK reflected the company’s decision to limit discounts and came as the company focused its marketing on building brand awareness for its new premium offering Sky Q.

 

In Italy, churn for the quarter was 11 per cent — up from 9.7 per cent in the same quarter in the previous year — as a result of Sky’s loss of Uefa Champions League rights to its rival Mediaset.

 

Ciarán Donnelly, analyst at Liberum, said the increase in churn was worrying, particularly as Sky could soon face heavier competition in Italy after Vivendi, the French media group, took control of Mediaset’s pay-TV business earlier this month.

 

Plucky man

Jonathan Guthrie

Sky’s Jeremy Darroch deserves credit for playing his breaks boldly in eight years at the top of the UK’s biggest pay-TV group, writes Jonathan Guthrie.

“The competition dynamics suggest that churn could be at a higher level going forward,” he said. “That could start to put pressure on margins.”

Analysts at Barclays said that the “big uncertainty” for Sky in the coming months came from the auction of pay-TV domestic live rights to games of the Bundesliga, Germany’s national football league. Under the new terms of the auction, which is expected to be fiercely contested, Sky will not be able to take all of the rights exclusively.

 

Sky has seen big increases in the cost of premium TV content in recent years, as it has faced intensifying competition from telecoms groups such as BT and online services including Netflix. But even so, the FTSE 100 group has managed to deliver revenue growth of about 5 per cent in each of the last five years, resulting in a cumulative increase in profit in excess of 50 per cent.

Refd.Sources -

  • http://www.telegraph.co.uk/business/2016/04/21/sky-customer-growth-slips-as-it-battles-for-football-rights/
  • http://www.bbc.com/news/business-36099310

BT Broadband Services Restored - "Malicious Attack" Ruled out

The firm says customers are now getting normal service following a technical failure that hit hundreds of thousands of customers.

Most reported problems:

  • Internet (69%)
  • Phone (16%)
  • E-mail (13%)

Recent reports mainly originated from: London, Birmingham, Guildford, Manchester, Coventry, Ruislip, Glasgow, Sheffield, Leicester, and Edinburgh. View on map

BT says services have been fully restored after a crash that affected broadband customers across the UK.

The communications firm's website and customer service platforms were affected by the glitch on Tuesday, blamed on a "technical issue". It has ruled out any suggestion of a "malicious attack".

A statement on Wedneday said: "BT is confident that services have been fully restored following an outage that affected several hundred thousand customers yesterday.

"A faulty router was to blame for the outage and we apologise to those customers who were affected.

"Most customers will be able to access their broadband without taking any action but some may need to reboot their equipment. for more information they may contact here"

BT Glitch Twitter

Social media users first started reporting problems at 2.30pm and customers took to Twitter to relay their experiences.

One, Keith Pestell, tweeted: "BT internet down, support lines down and website down. I did get through to India and the lady said: It's working here... really?".

Another, Char X, said: "What's happened with #BT? Internet down, help numbers not working and every page leads me to an error on the website!!!"

The Down Detector service, which monitors internet-based failures, noted thousands of customers in major cities reporting faults.

BT said it had managed to restore services to most customers within a period of approximately two hours.

Sky Impresses Again With Their Customer Service Stats - Ofcom Report

According to, 7 wave of uk customer services quality research conducted by regulator for the UK communications industries - Ofcom

Included in the report - The report looked at the customer service of BT, Sky, TalkTalk,

and Virgin Media, in regards to landline, broadband, and pay TV.

Another section looked at mobile providers.

Read full report (PDF) here.

Overall, fewer customers needed to contact their provider in 2015, but for slightly higher proportion of those customers who contacted sky the motive was to make a complaint. In terms of the customer service advisor themselves, Sky was the only provider to score above average across the board;

Sky and BT both saw better performance compared with last year.

When looking at just broadband,  At 80%, it's got the highest

satisfaction rating for the customer service of any of the four

providers since 2009.

In fact, it was the broadband provider least likely to solve acomplaint in less than an hour. BT was the top dog in that ranking, however, with 59% of complaints resolved within 60 minutes. Out of all the broadband complaints we made last year, the most common issue by far was - you guessed it - connection speeds beingtoo slow.

For support regarding landlines, Sky impressed once again, with 79% of customers reporting themselves satisfied with their customer service. 72% were satisfied with Virgin Media's; 69% with BT's; and 56% with TalkTalk's.

Also Read:

Sky verses BT - Broadband Packages Compared

Good News For Exiting Sky Customers - Sky agreed to scrap termination fees until January 1

Sky agreed to scrap termination fees until January 1, amid an ongoing investigation into how broadband companies treat customers who want to exit contracts early.

Sky broadband and landline customers whose line rental costs increased last month have been given an extra 30-day amnesty to exit their contracts penalty-free.

All "Sky Talk" customers were informed of the change in October and given one month to either switch to another package or cancel their service.

But after 30 complaints to Ofcom, Sky, which has around 12m customers, was ordered to extend this deadline.

As part of changes announced in October, Sky axed free weekend calls for broadband customers and increased some prices, including standard line rental to £17.40 per month from £16.40, a 6pc increase, taking effect on December 1.Companies including BT, EE, Sky and TalkTalk will be told they have to let customers walk away from their contracts without paying onerous penalties if they don't deliver what they promised.

Sky customers now have until January 31 to cancel their package.

A Sky spokesman said: "These changes mean we can offer our broadband and Talk customers even more value for money at the same time as investing in market-leading innovation and even better customer service for them."

As one of the largest organizations in the UK, Sky has confirmed that its customers do not face any kind of services related issues. However, to make sure that customers can contact them easily and get their problems solved, it has dedicated Sky Help team on hand which can b easily reached here.

Fixithere provides a number that connects directly to the sky customer care department! The customer care department has a team of expert customer care executives who are well-trained and made familiar with the company’s policies as well as latest special offers and deals. So, if you are an exiting sky customer and want to cancel your sky subscription, please use this sky customer services number today!

source - http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/12093716/Sky-told-to-ban-exit-penalties-in-January-for-customers-affected-by-price-increases.html

Sky TV v/s Virgin Media TV - Who's The Winner

SKY and Virgin Media both claim to be the UK's best broadband, TV and phone bundle provider.

It's an extremely close competition, but in this guide we'll look at some of the differences between the home media giants that we think everyone should be aware of before choosing.

Virgin Media and Sky are two of the main contenders for quality broadband, TV and phone. Both media empires offer a wide variety of choice, so how on earth do you choose?

From broadband speeds to home phone options and TV services, we look at which provider offers the best products and value for money, giving you all the information you need about Sky and Virgin Media.

Sky

Sky is a triple-play provider, offering broadband, TV and home phone services. As with Virgin Media, you can take these services alone or together as part of a Sky bundle.

Sky has more TV channels than any other provider, and supplies its TV services via a satellite dish attached to your property. Its broadband – including fibre – reaches a greater proportion of UK households than Virgin Media.

Virgin Media

Virgin Media is a quad-play provider: it offers broadband, TV, home phone and mobile services to its customers. You can choose to take these services individually, or as part of a collection.

Virgin Media operates its own broadband network and is responsible for both the rollout and maintenance of its purely fibre optic lines. As a result, its fixed-line services aren’t as widely available as Sky’s.

The competition between Sky and Virgin Media does have one serious upside: money off for new customers.

Find latest tv offers from each below, which could be worth keeping in mind as you read on.

Sky have a reputation for running a good deal - and they've pulled the stops out for Black Friday week. They've one for people interested in their TV deals, and one for those more tempted by their broadband: click on the blue buttons to take advantage of them:Meanwhile, here's what Virgin are offering to try to tempt new customers:

Image Source: (Sky customer services)

Sky TV vs Virgin Media TV_ Which is best

Virgin Media has some great benefits. Its broadband speeds are the fastest in the country and its customer satisfaction levels are consistently high across the board. Sky’s TV service is easily the best in the UK. The huge range of standard definition and high definition channels is a great draw for TV lovers, but it isn't cheap

In Ofcom's latest customer service report, satisfaction levels for Virgin Media customer service was rated at 78% in comparison to the industry average 80%. Whereas ,Satisfaction ratings for Sky’s TV service was rated 81%. Its landline service came in at 79% while it achieved 75% for sky broadband customer service.

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