The story
Origins
The Sky Television Network, an analogue direct-to-home satellite TV service using Luxembourg-based Astra satellites, launched in the UK on 5 February 1989 by Rupert Murdoch's Sky Television. It consisted of four channels broadcast free-to-air: Sky Channel/Sky One, Sky Movies, Sky News and Eurosport.
The present premium pay-TV service can trace its heritage back to 1990, when Sky Television and British Satellite Broadcasting (BSB) encrypted their respective film channels – Sky Movies and The Movie Channel which required viewers to get decoding equipment and a subscription to watch the channels. After the two companies merged to create British Sky Broadcasting (BSkyB) in November 1990, subscribers could get access to both channels, and two years later, the sports channel Sky Sports also became encrypted.
Premier League football
In the autumn of 1991, talks were held for the broadcast rights for Premier League for five years, from the 1992 season. ITV were the current rights holders and fought hard to retain the new rights. ITV had increased its offer from £18m to £34m per year to keep control of the rights. BSkyB joined forces with the BBC to make a counter bid. The BBC was given the highlights of most of the matches, while BSkyB paying £304m for the Premier League rights, would give them a monopoly of all live matches, up to 60 per year from the 1992 season. Murdoch described sport as a "battering ram" for pay television, which provided a strong customer base. A few weeks after the deal, ITV went to the High Court to get an injunction as it believed their bid details had been leaked before the decision was taken. ITV also asked the Office of Fair Trading to investigate since it believed Rupert Murdoch's media empire via its newspapers had influenced the deal. A few days later neither action took effect, ITV believed BSkyB was telephoned and informed of its £262m bid, and Premier League advised BSkyB to increase its counter bid.
BSkyB retained the rights paying £670m 1997–2001 deal, but was challenged by ONdigital for the rights from 2001 to 2004, thus were forced to £1.1 billion which gave them 66 live games a year.
Following a lengthy legal battle with the European Commission, which deemed the exclusivity of the rights to be against the interests of competition and the consumer, BSkyB's monopoly came to an end from the 2007–08 season. In May 2006, the Irish broadcaster Setanta Sports was awarded two of the six Premier League packages that the English FA offered to broadcasters. Sky picked up the remaining four for £1.3bn.
In February 2015, Sky bid £4.2bn for a package of 120 premier league games across the three seasons from 2016. This represented an increase of 70% on the previous contract and was said to be £1bn more than the company had expected to pay. The move has been followed by staff cuts, increased subscription prices (including 9% in Sky's family package) and the dropping of the 3D channel.
Sky Multichannels
In September 1993, BSkyB launched Sky Multichannels which was the present digital platform's analogue predecessor. Sky Multichannels was a subscription package that gave access not only to Sky's channels but also to those of third-party broadcasters.
The service started on 1 September 1993. It was based on an idea by then CEO Sam Chisholm and chairman Rupert Murdoch of converting the company's business strategy to an entirely fee-based concept. The new package included four channels that were formerly available free-to-air, broadcasting on Astra's satellites, as well as introducing new channels. The service continued until the closure of BSkyB's analogue service on 27 September 2001, due to the expansion of the Sky Digital platform after its launch three years before. Some of the channels did broadcast either in the clear or soft-encrypted (whereby a Videocrypt decoder was required to decode, without a subscription card) before their addition to the Sky Multichannels package. Within two months of the launch, BSkyB gained 400,000 new subscribers, with the majority taking at least one premium channel as well, which helped BSkyB reach 3.5 million households by mid-1994. Michael Grade criticised the operations in front of the Select Committee on National Heritage, mainly for the lack of original programming on many of the new channels.
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Launch of Sky Digital
BSkyB's digital service was officially launched on 1 October 1998 under the name Sky Digital, although small-scale tests were carried out before then. At this time the use of the Sky Digital brand made an important distinction between the new service and Sky's analogue services. Key selling points were the improvement in picture and sound quality, increased number of channels and an interactive service branded Open...., later called Sky Active. BSkyB competed with the ONdigital (later ITV Digital) terrestrial offering and cable services. Within 30 days, over 100,000 digiboxes had been sold, which helped bolster BSkyB's decision to give away free digiboxes and mini dishes from May 1999.
In addition to most channels from the Sky Multichannels package, many of which broadcast additional hours on Sky Digital, Sky Digital launched several new channels that were exclusive to the digital offer.
The switchover from analogue to digital proceeded relatively quickly. In 1998, there were 6 million 'multichannel' TV homes in the UK (i.e. homes that watch television other than the traditional analogue terrestrial), and over half of these homes watched television using BSkyB's analogue service. BSkyB's digital service surpassed the analogue service in terms of subscribers in late 1999.
By June 2000 the service had 3.6 million subscribers, which gave BSkyB 8.988 million subscribers across all platforms. This substantial growth reflected BSkyB's 34% share of viewers in multi-channel homes (up from 13.4% in 1999).
BSkyB's analogue service ended in October 2001, and the digital service would eventually be marketed as just 'Sky'. For some time, BSkyB also ran a free service named Freesat from Sky.
By June 2005, the number of digital subscribers increased to 7.8 million, while it produced 38,375 hours of sport in 2005. Sky's direct-to-home satellite service became available in 10 million homes in 2010; Europe's first pay-TV platform to achieve this milestone. Confirming it had reached its target, the broadcaster said its reach into 36% of households in the UK represented an audience of more than 25 million people. The target was first announced in August 2004, and since then an additional 2.4 million customers had subscribed to Sky's direct-to-home service. Media commentators had debated whether the figure could be reached as the growth in subscriber numbers elsewhere in Europe flattened.
Presence in DTT
The digital terrestrial television (DTT) service ONdigital/ITV Digital failed for numerous reasons, including, but not limited to numerous administrative and technical failures, nervous investors after a large downturn in the advertising market, the dot com crash, and Sky's aggressive marketing and domination of premium sporting rights. While Sky had been excluded from being a part of the ONdigital consortium, thereby making them a competitor by default, Sky was able to join ITV Digital's free-to-air replacement, Freeview, in which it holds an equal stake with the BBC, ITV, Channel 4 and Arqiva. Prior to October 2005, three Sky channels were available on this platform: Sky News, Sky Three, and Sky Sports News. Initially, Sky provided Sky Travel to the service. However, this was replaced by Sky Three on 31 October 2005, which was itself later re-branded as 'Pick TV' in 2011.
On 8 February 2007, Sky announced its intention to replace its three free-to-air digital terrestrial channels with four subscription channels. It was proposed that these channels would offer a range of content from the Sky portfolio including sports (including English Premier League Football), films, entertainment and news. The announcement came a day after Setanta Sports confirmed that it would launch in March as a subscription service on the digital terrestrial platform, and on the same day that NTL's services re-branded as Virgin Media. However, industry sources believed Sky would be forced to shelve plans to withdraw its channels from Freeview and replace them with subscription channels, due to possible lost advertising revenue.
Proposed platform
Sky Picnic was a proposed pay television service which would have sat alongside Freeview and Top Up TV on the digital terrestrial television (DTT) platform in the United Kingdom. The proposal detailed replacing Sky's three free-to-air channels (Sky News, Sky Sports News and Sky Three) with five pay TV channels: Sky Sports 1, Sky Movies SD1 plus Sky One during the evening with one hour of Sky News content. There would also be two further daytime channels: a factual channel and a children's channel. It was first proposed in 2007 but was subject to a public consultation by Ofcom. Whilst the service was cleared to launch in 2010 it never officially launched, Sky having put it on hold in 2008.
Expansion into broadband and others
In November 2005, in partnership with Vodafone, Sky Mobile TV was launched which was the UK's first commercially available mobile TV service. Vodafone live! customers with 3G-enabled handsets would receive the service.
Sky initially faced increased competition from telecommunications providers to deliver pay television services over existing telephone lines using ADSL. Such providers were able to offer "triple play" or "quadruple play" packages combining landline telephone, broadband Internet, mobile telephone and pay television services. To compete with these providers, in October 2005, Sky bought the broadband Internet service provider Easynet for £211 million. This acquisition allowed Sky to offer a Sky-branded broadband service (see On Demand) as well as a "triple play" package combining satellite television, land-line telephone and Broadband service.
By 2010, Sky had increasingly invested in making original content. That year it purchased Virgin Media Television with its production arm and in a deal with HBO led to the launch of the Sky Atlantic channel in 2011. Sky Vision production company launched in 2012.
In 2011, BSkyB acquired The Cloud which provided public Wi-Fi access points. In 2012, BSkyB launched Now TV, an over-the-top, no-contract television service separate from and to complement its existing pay-TV platform. By 2017, Sky had also launched a mobile virtual network operator, Sky Mobile.
To modernise its digital satellite service, Sky designed and launched its new service and receiver called Sky Q in 2016. On 1 March 2018, it was reported that Sky UK had concluded successful negotiations with Netflix to offer Sky subscribers access to its international streaming service.
On 17 September 2020, Sky Arts became the first premium Sky channel available on the free-to-air terrestrial Freeview service, joining Sky News among several other channels.
Television changes and IPTV launch
On 28 July 2021, Sky announced that its flagship channel Sky One would shut down on 1 September, to be replaced by two channels; Sky Showcase, showing a mixture of content from other Sky Channels, and Sky Max, showing Sky's original programming and entertainment previously shown on Sky One.
On 7 October 2021, Sky announced a new all-in-one TV set called Sky Glass. It was designed to support streaming of Sky TV and streaming service shows over WiFi, eliminating the need for a satellite dish or box. It launched on 18 October 2021, with three sizes available: 43-inch, 55-inch and 65-inch.
In March 2025, the company announced plans to close customer call centres in Stockport, Sheffield and Leeds, which would result in around 2,000 job losses and a 7 per cent reduction in its workforce.
On 26 February 2026, Sky shut down pay television channels Sky Showcase and Sky Max to relaunch the flagship channel Sky One. The group also changed all Sky TV channel logos to match Sky One's new Square layout.
In 2026, the parent company of Sky UK, Sky Group, confirmed that they are in the process of purchasing ITV's TV and streaming channels which, if approved, will result in ITV channels under operational management of Sky UK. Under the proposed deal, ITV will have to remain free-to-air until 2034 and ITV Studios will become a separate company in a supply deal and ITV shows will remain on ITV's channels.
From Wikipedia’s article on Sky UK, shared under CC BY-SA 4.0.6