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Reaching for the Sky

Jerry Johnson and Adrian Pilkington reveal the thinking behind the newly-announced Xbox 360/Sky link-up

GamesIndustry.biz You'll be unveiling subscription packages and charges later in the year, but what's the overarching business model for this - does Microsoft stand to take a cut of new Sky subscriptions driven through the Xbox platform?
Jerry Johnson

Right now what we're really focused on is talking about the user experience, we're not really going into any of the commercial terms, so I don't want to speculate or put anything out there that would insinuate a certain commercial model.

GamesIndustry.biz Is there an expectation of bringing new users to Sky via the Xbox platform?
Jerry Johnson

I believe that both of us, when we bring these products together, there's a broadly-appealing set of content that's going to bring new users to the Xbox platform. At the same time we're going to be introducing interactivity and bringing a very passionate group that's into competition, into sports, into the console, that before might not actually have been a Sky customer.

So I think that there's a strong overlap, and also a strong reach that we get from both of our products.

Adrian Pilkington

I think if you look at TGI data, the crossover between Xbox ownership and Sky subscription is extremely high, so there's already a strong affinity between the two brands. But I think that also gives us really good hope that we have the opportunity to allow Xbox owners who aren't Sky subscribers to reappraise the service.

GamesIndustry.biz You say there's a strong overlap between Xbox owners and Sky subscribers - if they're already subscribers then they'll also have a set-top box already. You must have done the research, are there any numbers you can put on your expectations of take-up?
Adrian Pilkington

No, we can't give any numbers on that, but broadly-speaking the deal with Xbox allows us to give great additional utility to give existing Sky customers and Xbox owners. It's fantastic that you've more flexibility in terms of how and where, and the manner in which you watch your content.

Yes, if there are opportunities for us to increase our subscription base, even better.

Jerry Johnson

It is about reach, but it's also about engagement - not just for new consumers but also existing consumers. For myself I have Sky HD at home in a set-top box, and I can tell you that when the service launches, if you've got an Xbox in the bedroom, it's another way to enjoy that Sky content.

I think it definitely has an aspect of reach, but definitely an aspect of engagement by existing customers.

GamesIndustry.biz Sky already offers a multi-room service, but individual Xbox owners will vary in terms of where they have their console - is there any concern that Sky on the Xbox 360 could eat into the existing multi-room revenues?
Adrian Pilkington

The SkyPlayer that's online at the moment - in order to have access to the channels you have to have access to multi-room to qualify.

Jerry Johnson is general manager for Xbox Live in EMEA and Adrian Pilkington is director of third party channels at Sky. Interview by Phil Elliott.

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