Growth in BSkyB's traditional satellite TV customer base has dwindled over the past few years, but investment in Now TV is starting to pay off. "We have had a strong third quarter and continued to grow at an accelerated rate as customers respond to the quality and breadth of our offering," said Darroch.
BSkyB's pre-tax profits for the nine months to the end of March were £793m, down 17% year on year. However, much of this is due to a non-cash write-off relating to depreciation and amortisation in investments such as Now TV and advertising service Adsmart.
Profits were also hit by the £70m investment announced to drive its connected set-top box strategy, and a one-off increase in Premier League TV rights costs. Overall BSkyB performed solidly with revenues up 6.6% in the nine months to the end of March to £5.66bn, and adjusted profits down just slightly at 2.4% to £1.2bnSo Sky has made an investment in Now TV, but is it anywhere near enough? My recent experience suggests a service that's not really reliable enough yet to unleash on consumers. It's certainly not a patch on Netflix or BBC iPlayer.