Sky TV sees further scope to raise customer prices in UK with customised bundles and premium content

Sky hopes to achieve higher prices for TV packages in its core British market, following years of investments, to offer customised bundles and premium content, its chief executive said yesterday.

Jeremy Darroch said neither the rise of low-cost internet TV competitors, such as Netflix, nor the loss of some football broadcasting rights had dented its capacity to retain customers.

Earlier this year, rival BT Group took over the rights from Sky for Champions’ League European football matches, which analysts said could have made it harder for Sky to raise prices.

But Sky said it retains dominance in other areas of sport, and in drama and entertainment. Already, the pay TV broadcaster has made modest price increases in sports and its Sky Atlantic channel.

“I think the opportunity for pricing is good and it is certainly our intention, in the UK, to do that (raise prices),” Mr Darroch told an audience of fund managers at Morgan Stanley’s annual industry conference.

“We want to do that behind innovation, behind improved service, behind improved content,” he added.

Sky, which has 10m subscribers in the UK and Ireland, has moved away from one-size-fits-all pricing, Mr Darroch said.

He said Sky is enjoying all-time low levels of customer turnover, not just in Britain, but in Italy and Germany, too.