Early-evening event report: Jeremy Darroch, CEO, BSkyB

Early-evening event report: Jeremy Darroch, CEO, BSkyB

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Friday, 22nd March 2013

BSkyB chief executive Jeremy Darroch emphasised the key role that commissioning original British content now plays at the satellite broadcaster.

Speaking at a well-attended RTS early evening event on 21 March – his first speech to the Society for four years – Darroch said that, in an ever-changing landscape, BSkyB’s commitment to investing in programmes remained the “one constant”.

View the Presentation and Question & Answer Session here

He stressed: “Content sits at the very heart of Sky’s business. Every year since our launch we’ve invested more on screen and every year we’ve grown. That is not a coincidence.”

BSkyB’s “big push in original British programming” is important to the firm’s continued success, Darroch emphasised.

The broadcaster’s job is to focus on customers and provide TV and additional services such as broadband and fixed telephony at prices subscribers can afford, he continued.  

“We never forget that people have a choice. This is a market where there is a strong free-to-air alternative and a wide range of other paid-for services,” said Darroch.

By investing heavily “in customer insight”, BSkyB enjoys a direct relationship with its subscribers.

More than anything else, customers say they choose Sky for a better choice of television, and something “that offers them more than what is freely available elsewhere”.

He added: “Today, we are spending well over £2bn every year on programmes, more than any other broadcaster in the UK. And we’d like to go further.

“When I talk to shareholders about the direction of the business, content is the one area that I always highlight as a priority for investment.”

Entertainment shows across the areas of drama, comedy and factual have emerged as what Darroch described as BSkyB’s “fourth leg” alongside sport, movies and 24-hour news. 

He explained: “On the face of it, entertainment isn’t an area that looks under-served.

“There are some great shows out there and viewers have been reasonably happy.

“But what we hear from our customers is that they have an appetite for more entertainment – and, just as importantly, an appetite for something a bit different.”

BSkyB has strengthened its portfolio of channel brands with the launch of Sky Atlantic and Sky Living, which now sit alongside Sky Arts and Sky 1, “with each channel enjoying a distinct and complementary positioning.”

He continued: “We’ve brought some of the best in the business to Sky as part of the excellent channel management and commissioning teams under the leadership of Sophie Turner Laing and Stuart Murphy.”

The commitment to high-quality, home-grown content makes good sense commercially and is good for the UK creative industries. Last year BSkyB “worked with more independent production companies than ever – about 130 in total”.

The company has focused on “the things customers tell us are important to them. That means being ambitious and pursuing quality, putting high-end budgets behind the best ideas.”

He highlighted the pairing of Jon Hamm and Daniel Radcliffe, aka Don Draper and Harry Potter, in Bulgakov’s Young Doctor’s Notebook on Sky Arts.

In comedy, BSkyB has brought 22 new British shows to the screen over the past two years.

Highlights included Julia Davis’s Hunderby, winner of a British Comedy Award, and Stella, created by and starring Ruth Jones and recently re-commissioned for a third series.

More is in the pipeline from head of comedy Lucy Lumsden and her team.

Drama is another area where the satellite broadcaster sees “real opportunity”. BSkyB recently announced its biggest-ever drama slate. There are more than 70 hours in production, including returning series Strike Back and Mad Dogs.

Darroch said: “By next year, we will be spending £600m a year on original British content across all our channels.

“To put that figure into some perspective, our spend will have increased by more than 50% over three years. But it’s not the limit of our ambition and we certainly don’t intend to stand still in the future.”

Darroch’s speech was followed by a wide-ranging question-and-answer session chaired by the Daily Telegraph’s Neil Midgley. Subjects tackled included the slowdown in BSkyB's TV subscriber growth, and majority shareholder News Corporation's failed 2010 bid to own the company outright.  

A full report will appear in the April edition of Television.

View the Main Presentation and Question & Answer Session online

Report by Steve Clarke

Picture by Paul Hampartsoumian

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