Sky: Fairytale

Principal authors: Zoe Harris, WCRS; Emma Houston, Phil Spencer and Tim Ainsworth, MediaCom
Contributing author: Matt Willifer, WCRS

EXECUTIVE SUMMARY: BALANCING VOLUME & VALUE

The key question being tackled by modern marketers, particularly concentrated in times of consumer austerity, is one of balance: how to simultaneously increase the volume and value of customers. In 2009, Sky was on track to hit an ambitious volume target of 10m subscribers by the end of 2010. Similarly, the business was migrating to a multi-product holding model to further diversify the entertainment business into home communications.

The impact of the economic crisis and subsequent recession in the UK posed an immediate challenge to Sky's planned trajectory of accelerated growth. Consumer confidence eroded, price sensitivity increased, and the value of non-essential "premium" branded products came under far greater scrutiny, as household purse strings inevitably tightened.