New Report Spotlights Sky’s Economic Impact

LONDON: Sky’s impact on the U.K. economy has been evaluated for the first time in a study conducted by Oxford Economics, which finds that the British broadcasting group contributed £5.4 billion to the country’s GDP in 2011.

The report, The Economic Impact of Sky on the U.K., shows that Sky generated sales of £6.4 billion and more than 75 percent of this revenue was retained in the U.K. Sky’s direct contribution to GDP of £2.2 billion amounts to around 40 percent of the contribution made by the country’s entire TV and radio creative sector.

As for its impact on the jobs market, Sky employed 22,800 people in the U.K. at the end of 2011, with 2,600 employed by Sky in producing and commissioning content. This number is expected to grow, with Sky’s plan to increase its investment in original British content to £600 million by the end of 2014. Sky has already increased its U.K. content spend to £450 million a year. In total, Sky is estimated to support 118,600 jobs in the U.K.

Sky also makes a significant contribution to the economy in terms of taxes paid. In the 2010-11 financial year, Sky directly contributed £941 million to the Exchequer. In total, Sky is estimated to support a £2.3 billion contribution to tax revenues, equivalent to £36 for every person in the U.K. 

Jeremy Darroch, Sky’s chief executive, commented: "We have grown rapidly since our business was established just over 20 years ago. Along the way we have taken risks, invested billions of pounds and been a driving force for innovation and change in our sector. As a result we have transformed U.K. consumers’ experience of television and home communications, while generating significant returns for our shareholders and contributing positively to the U.K. economy as a whole.

"This report from Oxford Economics measures and explains the scale of our economic impact for the first time. We hope that Sky’s story provides a good example of the important contribution that a successful British company can make, particularly at a time when economic growth is harder to come by. As we look ahead, our appetite to invest remains strong and we hope to contribute even more in the future."