Sky UK


Sky UK Limited, trading as Sky, is a British broadcaster and telecommunications company that provides television, broadband internet, fixed line and mobile telephone services to consumers and businesses in the United Kingdom. It is a subsidiary of Sky Group and is headquartered at the Sky Studios in Isleworth.
Sky is a major media company and the largest British broadcaster by revenue. It operates the Sky News news media organisation, Sky Sports which is the largest sports TV broadcaster in the UK, and the Sky Studios film and TV production company. Sky is also the country's leading provider of pay-TV services through its satellite TV platform Sky Q as well as the IPTV-based Sky Glass and Sky Stream products. Its flagship channels include Sky Showcase, Sky Max, Sky Witness, Sky Documentaries, Sky Atlantic, and Sky Cinema. Sky is also one of the "big four" internet service providers.
Formed in 1990 through the merger of Sky Television and British Satellite Broadcasting, BSkyB grew into a major media company by the end of the decade, notably owning all the television broadcasting rights for the Premier League and almost all the domestic rights of Hollywood films. Following BSkyB's acquisition of Sky Italia and a majority interest in Sky Deutschland in 2014, its holding company British Sky Broadcasting Group plc changed its name to Sky plc. The UK subsidiary's name was changed from British Sky Broadcasting Limited to Sky UK Limited, and continuing to trade as "Sky".

History

Origins

The present service can trace its heritage back to 1990, when BSkyB's predecessors Sky Television and British Satellite Broadcasting encrypted their respective film channels – Sky Movies and The Movie Channel which required viewers to get decoding equipment and a subscription to watch the channels. After the two companies merged, subscribers could get access to both channels, and two years later, the sports channel Sky Sports also became encrypted.

Premier League football

In the autumn of 1991, talks were held for the broadcast rights for Premier League for five years, from the 1992 season. ITV were the current rights holders and fought hard to retain the new rights. ITV had increased its offer from £18m to £34m per year to keep control of the rights. BSkyB joined forces with the BBC to make a counter bid. The BBC was given the highlights of most of the matches, while BSkyB paying £304m for the Premier League rights, would give them a monopoly of all live matches, up to 60 per year from the 1992 season. Murdoch described sport as a "battering ram" for pay television, providing a strong customer base. A few weeks after the deal, ITV went to the High Court to get an injunction as it believed their bid details had been leaked before the decision was taken. ITV also asked the Office of Fair Trading to investigate since it believed Rupert Murdoch's media empire via its newspapers had influenced the deal. A few days later neither action took effect, ITV believed BSkyB was telephoned and informed of its £262m bid, and Premier League advised BSkyB to increase its counter bid.
BSkyB retained the rights paying £670m 1997–2001 deal, but was challenged by ONdigital for the rights from 2001 to 2004, thus were forced to £1.1 billion which gave them 66 live games a year.
Following a lengthy legal battle with the European Commission, which deemed the exclusivity of the rights to be against the interests of competition and the consumer, BSkyB's monopoly came to an end from the 2007–08 season. In May 2006, the Irish broadcaster Setanta Sports was awarded two of the six Premier League packages that the English FA offered to broadcasters. Sky picked up the remaining four for £1.3bn.
In February 2015, Sky bid £4.2bn for a package of 120 premier league games across the three seasons from 2016. This represented an increase of 70% on the previous contract and was said to be £1bn more than the company had expected to pay. The move has been followed by staff cuts, increased subscription prices and the dropping of the 3D channel.

Sky Multichannels

In September 1993, BSkyB launched Sky Multichannels which was the present digital platform's analogue predecessor. Sky Multichannels was a subscription package that gave access not only to Sky's channels but also to those of third-party broadcasters.
The service started on 1 September 1993. It was based on an idea by then CEO Sam Chisholm and chairman Rupert Murdoch of converting the company's business strategy to an entirely fee-based concept. The new package included four channels formerly available free-to-air, broadcasting on Astra's satellites, as well as introducing new channels. The service continued until the closure of BSkyB's analogue service on 27 September 2001, due to the expansion of the Sky Digital platform after its launch three years before. Some of the channels did broadcast either in the clear or soft encrypted before their addition to the Sky Multichannels package. Within two months of the launch, BSkyB gained 400,000 new subscribers, with the majority taking at least one premium channel as well, which helped BSkyB reach 3.5 million households by mid-1994. Michael Grade criticised the operations in front of the Select Committee on National Heritage, mainly for the lack of original programming on many of the new channels.

Launch of Sky Digital

BSkyB's digital service was officially launched on 1 October 1998 under the name Sky Digital, although small-scale tests were carried out before then. At this time the use of the Sky Digital brand made an important distinction between the new service and Sky's analogue services. Key selling points were the improvement in picture and sound quality, increased number of channels and an interactive service branded Open...., later called Sky Active. BSkyB competed with the ONdigital terrestrial offering and cable services. Within 30 days, over 100,000 digiboxes had been sold, which helped bolster BSkyB's decision to give away free digiboxes and mini dishes from May 1999.
In addition to most channels from the Sky Multichannels package, many of which broadcast additional hours on Sky Digital, Sky Digital launched several new channels that were exclusive to the digital offer.
The switchover from analogue to digital proceeded relatively quickly. In 1998, there were 6 million 'multichannel' TV homes in the UK, and over half of these homes watched television using BSkyB's analogue service. BSkyB's digital service surpassed the analogue service in terms of subscribers in late 1999.
By June 2000 the service had 3.6 million subscribers, which gave BSkyB 8.988 million subscribers across all platforms. This substantial growth reflected BSkyB's 34% share of viewers in multi-channel homes.
BSkyB's analogue service ended in October 2001, and the digital service would eventually be marketed as just 'Sky'.
By June 2005, the number of digital subscribers increase to 7.8m, while it produced 38,375 hours of sport in 2005.
In November 2005, in partnership with Vodafone, Sky Mobile TV was launched which was the UK's first commercially available mobile TV service. Vodafone live! customers with 3G-enabled handsets would receive the service.

2010s

Sky's direct-to-home satellite service became available in 10 million homes in 2010, Europe's first pay-TV platform to achieve that milestone. Confirming it had reached its target, the broadcaster said its reach into 36% of households in the UK represented an audience of more than 25m people. The target was first announced in August 2004, and since then an additional 2.4 million customers had subscribed to Sky's direct-to-home service. Media commentators had debated whether the figure could be reached as the growth in subscriber numbers elsewhere in Europe flattened.
In December, the UK's parliament heard a claim that a subscription to Sky was 'often damaging' to welfare recipients, along with alcohol, tobacco and gambling. Conservative MP Alec Shelbrooke was proposing the payments of benefits and tax credits on a "Welfare Cash Card", in the style of the American Supplemental Nutrition Assistance Program, that could be used to buy only "essentials".
In 2016, Sky launched its new TV and entertainment service called Sky Q.
On 1 March 2018, it was reported that Sky UK had concluded successful negotiations with Netflix to offer Sky subscribers access to its international streaming service.
Comcast, the largest cable TV provider in the United States, outbid 21st Century Fox, on 22 September 2018 in an auction for control of Sky UK. On 4 October 2018, Fox sold their stake to Comcast, giving the latter a 76.8% controlling stake. On 12 October 2018, Comcast announced it will compulsorily acquire the rest of Sky after its bid gained acceptance from 95.3% of the broadcaster's shareholders with the company being delisted by early 2019. Sky was delisted on 7 November 2018 after Comcast acquired all remaining shares.

2020s

On 17 September 2020, Sky Arts became the first premium Sky channel to become available on the free to air terrestrial Freeview service, joining Sky News and a couple of channels which trace their lineage back to Flextech.
On 28 July 2021, Sky announced that its flagship channel Sky One would shut down on 1 September, to be replaced by two channels; Sky Showcase, showing a mixture of content from other Sky Channels, and Sky Max, showing Sky's original programming and entertainment previously shown on Sky One.
On 7 October 2021, Sky announced a new all-in-one TV set called Sky Glass. It is designed to support streaming of Sky TV and streaming service shows over WiFi, eliminating the need for a satellite dish or box. It launched on 18 October 2021, with three sizes available: 43-inch, 55-inch and 65-inch.
In October 2022, Comcast announced that it had written off 8.6 billion of its valuation of Sky, with its third-quarter sales dropping 14.7 per cent to $4.3 bn
In March 2025, the company announced plans to close customer call centres in Stockport, Sheffield and Leeds, which will result in around 2,000 job losses and a 7 per cent reduction in its workforce.