NOW TV teach-in 23rd June 2015

The Hobbit:

The Battle of Five Armies

Andrew Griffith CFO, Sky plc

Our market is growing

• Video consumption never been higher

• More ways to watch than ever before with

explosion of connectivity and devices

• Expanded opportunities for growth

Edge of tomorrow: Live. Die. Repeat

Offering customers the best choice of

the content they love…

How we win

…with greater flexibility to watch

when and how they want it

5

Transactions

Pay light Pay Premium Pay

6

Rio 2

Available now

Jo Fox

Director of Brand & Communications

What is NOW TV? NOW TV is the online TV streaming service from Sky

No contract Great value Easy pay TV

What do you get?

13 Live Channels. 250+ Box Sets. Catch Up TV.

1,000+ Movies on demand. Up to 30 new premieres added every month.

24 Hours access to all 7 Sky Sports channels.

7 Days access to all 7 Sky Sports channels.

9

How do you get it

Available on over 60 devices including the NOW TV Box

Where else can I get it?

Why people want NOW TV Expanding into headroom that is not actively considering full pay TV

Other services previously used by NOW TV customers

57%

16% 13% 10% 7% 6% 4% 2% 1%

Did notconsiderany otherprovider

Netflix AmazonPrime

Sky BT TV VirginMedia

YouView TalkTalk Anothersupplier

Other services considered by NOW TV customers

Source: NOW TV May; June 2015 (respondents can select more than one reason) NOW TV Joiners survey 2015

68%

41%

29%

25%

Access contentnot on

Freeview

No contract The price Just to try it out

Reasons for joining NOW TV

37% 38%

17% 16% 16% 16% 8%

4%

None Netflix Amazon iTunes GooglePlay

Blinkbox Wuaki TV CinemaNow

Live

VOD

Live

VOD

Live

VOD

Total NOW TV viewing

How our customers use NOWTV Supports viewing habits which are changing from live to on demand

Sky IQ: Data as at June 2015

Entertainment pass viewing

Movies pass viewing

13

Over five hours per week

Almost six hours per week

How do NOW TV customers watch it Over 3.2m hours of content is consumed by customers a week

Sky IQ Data as at June 2015

51%

36%

12%

NOW TV Box Big Screen(Consoles, Connected TVs, TV

Platforms)

Small Screen(Tablets, Phones)

Split of Viewing by Primary Device Type Average Across Passes

The NOW TV Box

The NOW TV Box has grown rapidly to become our largest

platform and drives the highest engagement

15

22

27

Small Screen Big Screen NOW TV Box

Split of Viewing by Pass and Device

0% 20% 40% 60% 80% 100%

Movies

Ents

Sports

Average Monthly Viewing Hours (Primary Device)

Sky IQ Data as at June 2015

17 *Monthly price of TV proposition

£5 £25

Separate brands positioned for different markets

NOW TV Customer research July 2014

“It makes it really easy to

get the best stuff, and

none of what I don’t.”

“It’s fun and it’s easy.

It’s just really good

telly.”

FUN

EASY

EXCITING

SMART

“…with NOW TV you feel

good about the choice

you’ve made” I know where I stand with

Now TV. Nothing is hidden,

everything is clear. It’s so

easy I love it!

What our customers say?

What is the brand difference

SKY – Two brands aligned to content in different ways

To satisfy people's need for really good TV Make entertainment better, make life better

Complementary Growth

Want the biggest and best choice of entertainment and ways to

watch it, every day of the year

Want to dip in and dip out, aren’t ready to commit to a contract

What’s next?

1. Sky Sports Month Pass:

• ln time for kick-off of football season

• £31.99 with no commitment to subscribe.

What’s next?

2. The next generation NOW TV box

• On sale in August for £14.99

• Faster and better experience + ethernet port

What’s next?

3. Changes to the user interface rolling out over coming months

Conclusion

• Maintain momentum – lots more opportunity for growth

• Continue to segment the market – dual brand strategy

• Stay ahead of the game – continue to innovate

Q&A