10th Jun 2014 09:46
LONDON (Alliance News) - British Sky Broadcasting PLC Tuesday announced that it will be launching a new channel dedicated to European Football, Sky Sports 5.
The new channel will be added at no extra cost, as part of Sky's sports package, and customers who take up the channel can also get two years free unlimited broadband.
Customers will be able to register for the new channel from June 12.
Analysts at Berenberg said they don't see the new channel as a driver for "customer growth or upgrades", but instead consider the broadband offer as a way for BSkyB to up "the ante against a resurgent BT."
The most important content on the channel is the Champions League, Berenberg noted, as BSkyB still holds the rights to the league for a further year. BT Group PLC snapped up the exclusive rights from August 2015 for EUR1.08 billion.
Competition between the two companies has heated up over the past year, after BT launched its BT Sport service after winning the Champions League rights and exclusive rights for Europa Cup football matches.
BT is also using the service to bolster its existing offerings, with BT broadband customers getting the service for free. BT announced in April that it would be extending the free service for broadband customers for a second season.
BSkyB charges GBP22 a month for its Sky Sports package, on top of existing television bundles. For BT customers who are do not have a Broadband package, the service can be watched for GBP12 a month in standard definition and GBP15 a month in high definition on BSkyB satellite boxes.
Berenberg noted BSkyB's aggressive stance on broadband, with the new deal offering two years rather than one, alongside other existing deals such as half-price television and free broadband for a year.
"As highlighted previously, BSkyB?s average revenue per user has flattened out, despite record new product sales," Berenberg said. "We thus expect Sky to continue to post strong broadband adds, even if the financial benefit does not come through."
Shares in BT were trading down 2.8% at 394.70 pence Tuesday morning, and shares in BSkyB were trading down 1.5% at 862.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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