The advantage of the company and how it has sustained in the industry
Although the profitability in 2002 was slightly higher than in 2003. BskyB still has an average cross gross margin of 39. 54 % over these three years and a current ratio of 1. 24. To prove that BskyB has sustained a firm position within the competitive industry it is significant to note that the company has had a 17 % increase in its total turnover leading to an increase in subscribers, satellites and digi boxes, with a total turnover of 3,186. 0. Although James Murdoch’s position is questioned as Chief Executive it is significant to point out that a recent change has been made, of which James Murdoch has decided to pay dividence of 2.75p per share4.
This has been done for the first time after five years from 1998. Some believe that this decision is a ‘sweet timed’ one, however the matter of the fact is, the decision made has a positive impact on BskyB, determining its bright future which can bee seen as the company has invested more money in different areas such as the selling/general/admin expenses for 2003 is the highest from the past three years of 759. 0 compared to 619. 0 for 20025. The British television
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However BskyB has proved to its consumers and to the industry of the immense power and firm hold it sustains. This can be understood by drawing out the advantages it has: The best selling point and advantage of BSkyB is the great choice of channels available for viewing. Interactive services such as shopping and banking also give them competitive advantage. The sound and picture you receive from digital TV is of a better quality. BSKYB is a vertically intergraded broadcaster, which buys TV rights for example sporting events. Apart from some small niche channels BSKB is currently the only provider of sports premium channels.
It holds broadcasting rights to the leading football leagues in Britain and Scotland, and has minority stakes in several clubs. They also are owners of Manchester United Football Club. They make some of their own programmes and package programmes from a range of sources into various channels. These are then distributed to its subscribers using its direct to home satellite as well as selling the wholesale to other relaters using different distribution platforms. Sky Box Office is a good incentive as it offers the subscriber the choice to watch recent movies first on Sky. They are shown as often as every 15 minutes.
Viewers can choose up to 20 movies a day. Sky Box Office movies are available at the touch of a button. They are always in stock, there is no need for them to be returned to the video shop and there are no queues such as the pay per view options and the advantage of personalizing an individuals use such as personal security pins for certain channels i. e. channel x. Sky has also entered the music category with the same passion it has for sport and other entertainment. Their channels are highly interactive with a unique mix of music, lifestyle and entertainment that reflects on their audience’s.
BSKYB have launched a new ITV gambling channel called Sky Vegas Live. The channel broadcasts a variety of gambling programmes, including computerised horse racing and a Super Keno draw, with further options, such as virtual dog racing, to be delivered in the coming months. The bets are made through the Sky bet system via their remote controls. Consumers are very demanding in terms of what they want to watch for example many would want to eliminate commercial slots. BSKYB have met the consumers demand by introducing Sky plus, which is big advantage over the terrestrial channels.
Sky plus allows channels to be recorded and played back individually. The programmes are stored on the hard drive and can be accessed in the future using the simple on screen menu via the remote control. The viewer can then watch the programmes they have recorded in any order at any time. Conclusion Referring back to our main aim of identifying BskyB’s position within the UK Television Industry. We have come to the overall conclusion that although there are speculations of the management positions with the company such as James Murdoch becoming Chief Executive, the company still sustains a firm hold on the industry.
We have proved this looking at the terrestrial competitors and most significant of all the financial strengths. BskyB has taken the audience viewing habits and changed them, delivering more choice and the ability of almost full control of their viewing. This is proven by the latest technological development of Sky Plus box set which allows you to program in your own favourite programmes, as if creating your personal channel and eliminating things such as commercials. These are huge advantages and with constant development, BskyB are surely looking at another increase on the 2004 turnover.