Creating consumer demand for Sky TV through sports
A Sky case study

Page 1: Introduction

Successful marketing involves providing consumers with the goods and services they require, where they want them and when they want them. In this country, millions of people enjoy participating in and watching a range of sporting activities. There is great competition for tickets to major sporting events, such as a centre court match at Wimbledon, a Five Nations rugby international or a key...
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Page 2: Multi channel growth in the UK

When choosing Sky TV, consumers subscribe to a multi-channel package which enables them to watch a range of general entertainment and specialist channels. Today, Sky TV offers more than 40 channels to viewers. Multichannel subscription has expanded at a rapid rate - in December 1989, only 3.3% of television owners in the UK subscribed to multi-channel TV. By December 1996, almost six million...
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Page 3: Marketing obectives

BSkyB Ltd has three main marketing objectives. These are to: Drive new subscriptions – targeting the ‘undished’ i.e. gain as many new subscribers as possible. Manage the existing subscriber base. This involves maintaining the loyalty of existing customers by: a. reducing the churn rate i.e. the number of people cancelling ongoing subscriptions. b. maximising the number of...
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Page 4: Sports marketing strategy

Described by Rupert Murdoch as the ‘battering ram’ of Pay TV, Sky Sports is, in many ways, the ‘jewel in the crown’ of Sky’s activities. It is easy to see why this is the case. For example, a large number of rugby fans became Sky TV subscribers when the British Lions rugby team toured South Africa in the summer of 1997. Sky TV has thus become a ‘must have&rsquo...
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Page 5: Key sporting events

Sky’s major sporting contracts include:Football - to the end of 2000-01 Exclusive live coverage of the FA Carling Premiership (60 games per season). Live coverage of the FA Cup from Round One to the Semi-Final (at least one tie and one replay from each round). Exclusive live coverage of England internationals at home. Golf Exclusive live coverage of the Ryder Cup in 1997 and...
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Page 6: Conclusion

The introduction of digital technology presents a major opportunity for BSkyB Ltd. Digital broadcasting offers greatly increased channel capacity and the ability to make better use of newer features such as Pay Per View, near video on demand and interactive services such as home shopping. BSkyB Ltd will be the first to introduce digital broadcasting services in the UK. Its launch is planned for...
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