Mai Fyfield - Amazon S3s3-eu-west-1.amazonaws.com/skygroup-sky-static/documents/...2010–2015 2010 216 2015 419 2014 2016 6% Total video consumption in Sky homes (UK)* *Average Sky

Fortitude

Series 2

Mai Fyfield Chief Strategy Officer

2

This document contains certain forward looking statements with respect to the Group’s financial condition, results of operations and business, and our strategy,

plans and objectives for the Group. These statements include, without limitation, those that express forecasts, expectations and projections, such as forecasts,

expectations and projections in relation to new products and services, the potential for growth of free-to-air and pay television, fixed line telephony, broadband and

bandwidth requirements, advertising growth, DTH and OTT customer growth, On Demand, NOW TV, Sky Go, Sky Go Extra, Sky+ HD, Sky Q, Sky Store, Sky Online, mobile,

Multiscreen and other services penetration, revenue, administration costs and other costs, advertising growth, churn, profit, cash flow, products and our broadband

network footprint, content, wholesale, marketing, synergies and integration, and capital expenditure.

These statements (and all other forward-looking statements contained in this document) are not guarantees of future performance and are subject to risks,

uncertainties and other factors, some of which are beyond the Group's control, are difficult to predict and could cause actual results to differ materially from those

expressed or implied or forecast in the forward-looking statements. These factors include, but are not limited to, the fact that the Group operates in a highly

competitive environment and faces competition from a broad range of organisations, the effects of laws and government regulation upon the Group's activities, the

fact that the Group’s business is based on a subscription model and its future success relies on building long-term relationships with its customers, its reliance on a

complex technical infrastructure which is subject to risk of failure, change and development, failure of key suppliers, the Group’s exposure to financial market risks, the

fact that the Group must protect its customer and corporate data and prevent breaches of security, risks inherent in the implementation of large-scale capital

expenditure projects, the fact that the Group relies on intellectual property and proprietary rights which may not be adequately protected under current laws or

which may be subject to unauthorised use and the fact that people at Sky are critical to the Group’s ability to meet the needs of its customers and achieve its goals

as a business.

Information on the significant risks and uncertainties is provided in the “Principal risks and uncertainties” section of Sky’s Annual Report for the full year ended 30

June 2016. Copies of the Annual Report are available from the Sky plc web page at www.sky.com/corporate and in hard copy from the Company Secretary, Sky plc,

Grant Way, Isleworth, Middlesex TW7 5QD. All forward looking statements in this document are based on information known to the Group on the date hereof. The

Group undertakes no obligation publicly to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

3 *Sky wholly owned channels & JVs

SKY ORIGINAL PRODUCTION

European Households reach - June 2016

56m HHs

Share of Viewing - 2015/16

#1 50%

European content investment - 2016/17

Biggest investor with £5bn budget

across free

and pay

Pay

portfolio

share of pay

viewing*

4

101m

94m

106m

101m

2011 2016 2020F

US Western Europe

European Pay TV forecast to

outstrip US (HH)

The volume of original scripted

series in the US has nearly doubled

2010–2015

2010

216

2015

419

2014 2016

6%

Total video consumption

in Sky homes (UK)*

Source: PWC Global entertainment and media outlook 2016-2020 *Average Sky household viewing in UK: all Live, Recorded, On Demand, Sky Go,

second screen and estimates of other video viewing on connected devices

Source: FX Networks Research. Excludes daytime dramas, one-episode

specials, non-English Language and children’s programming

5

The Young Pope

• Our portfolio of content destination brands

resonates highly with customers

• Our scale in Direct To Consumer means we control

our destiny as a content business

• Deep consumer insights across the value chain

give Sky a competitive advantage in both

6

Best in class monetisation capability Winning portfolio of content brands

7


1. Destination brands in the top TV genres

2. Depth and breath of programming

across genres

3. Mix of international and local content

through our brands

4. Best partner for rights holders

5. Deep investment in original production

8

#1 for Sports #1 for Movies #1 for Ents

We have customers’ No. 1 favourite channel in each of the top TV genres

Sources: UK Content Tracker Sept‘16, Germany Channel Brand Tracker

September ‘16, Italy Sky Partner Channels research Q4 FY16

9

The Best Sports

The Best Movies

Sky Originals & Best of US

Diverse Audience

Needs

Diverse Content

Supply

10

Sky Sports share of viewing

in Sky Sports homes

<15%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


11

Different content

suppliers

>500

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


12

Largest single supplier

share of our content spend

18%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


13

Premier League share

of Sky Sports schedule

4%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


14

Seria A share

of Sky Sports schedule

9%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


15

Largest studio share

of ‘current’ titles on

Sky Cinema

12%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


16

UK ents shows with an

audience over 1 million

111

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


17

HBO share of Sky

Atlantic schedule

19%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


18

Of all pay viewing

50%

Diverse Audience

Needs

Diverse Content

Supply

The Best Sports

The Best Movies


19

7 of Sky Cinema Italy’s 10 most

watched films were Italian in 2015

3 of the top 5 shows on Sky 1 in

2015 were Sky Original productions

Babylon Berlin: part of an exciting

pipeline of 8 original productions

Local Local

International International International

Local

20

Marketing partnerships

Building franchises

Driving transactional revenues

• Secure and growing

• Marketing resources and expertise from

across the value chain:

- £300m media spend in the UK

- £70m worth of cross promotional airtime

- PR stunts and pop up channels

• Deep customer insights

• Broad and new monetisation opportunities +39%

FY 13/14 – 15/16

Regularly the # 1 UK digital

retailer for top movies titles

21

Richard Plepler Video

22

Original Ents investment

2016 2021

Building on our current successes

2011

x4

x2.5

23


2016 2021


In Italy, Gomorrah S2 averaged 2.3m viewers,

double Game of Thrones

2011

x4

x2.5

24


2016 2021


In the UK, Lucky Man attracted larger audiences than the most

recent series of US hits like Modern Family, The Flash and NCIS

2011

x4

x2.5

25


2016 2021


In the UK alone, we now have over 250 series in

development or production

2011

x4

x2.5

26


27

1. Monetise every pay home

2. Build our international sales

capability

3. Grow reach in FTA homes

4. Build scale and innovation in

advertising


28

Any network All important screens & devices

Wholesale (UK)

Retail: Direct to consumer

All major European distributors

Retail: Via agents

Mobile

Satellite

IP

Cable

29

Sky Vision: A growth story

Projected Sky Vision Revenues

2012 Today 2020

£200m

£100m

£10m

“The rise of Sky Vision is a clear success story”

Broadcast Distributors Survey 2015

Production cost £2.3m per ep

Tax Credits

Vision Sales

Cost to Sky £1.1m per ep

£27m £5m

£9m

£13m

Fortitude: financing our commission

30

(Launch target early 2017) Launched 2015

Broadening our FTA assets

Online assets

31

2016 2020

£778m

£1bn

Altered slide – can you provide some

nice imagery?

Growing revenues

32

• Europe’s #1 content business and growing

• In control of our destiny as the original DTC company

• Strong content brands, with huge breadth and depth

of programming

• Deep understanding of our customers and our markets

• Diversified and platform-agnostic monetisation capability

• The smart choice for our content partners

Zootropolis

Fortitude

Series 2

Mai Fyfield Chief Strategy Officer

Documents

Mai Fyfield - Amazon S3s3-eu-west-1.amazonaws.com/skygroup-sky-static/documents/...2010–2015 2010 216 2015 419 2014 2016 6% Total video consumption in Sky homes (UK)* *Average Sky