BT Sport & BSkyB: The battle for supremacy in the UK sports broadcasting market
Since the Astra satellite was launched in 1988, the UK pay TV industry has become a multi-billion Pound business, with Sky being the market leader. Much of its success is built on providing live sport. Rival operators have tried and failed to make inroads into Sky’s dominance but BT has shown that it is ready to invest heavily in sports content in a bid to mount a serious challenge.
Features and benefits
This case analyzes the size of the UK pay TV market and outlines who are the main players.
This case study looks at how Sky has secured its position as the undisputed market leader.
This case study examines the importance of exclusive live sports content within the UK pay TV industry.
This report analyzes BT's entry into the pay TV market and examines the strategies it is employing in a bid to rival Sky
Since it was formed in late 1990, Sky has become the undisputed king of the UK pay TV market, amassing a subscriber base over of 10 million and generating revenues in excess of £7bn ($11.1bn). With a market share of almost 70% in terms of subscribers, Sky’s position is unrivalled.
Live sport is the foundation of the company’s success. The company has invested significant amounts of money securing exclusive broadcast rights to sports, most notably English football’s Barclay’s Premier League and this has allowed it to adopt a two-way strategy in order to maximize revenues, namely acting as a distributor and a wholesaler.
On August 1 2013, BT launched BT Sport, a flagship service broadcasting out of London’s Olympic Park. By paying vast sums of money to acquire the rights to sports including Barclays Premier League football, Bundesliga football, Aviva Premiership Rugby, UFC, and MotoGP, BT has shown that it is serious about rivaling Sky.
Your key questions answered
How big is the UK pay TV market?
How has Sky amassed a market share of almost 70%?
How important is live sports content in the UK pay TV market?
How is BT launching a serious challenge to Sky's dominance?