Sky CEO’s Optimism Shines for HBO Pact in the UK; Germany Unit Retains Potential
Dana Strong, CEO of Comcast-owned European TV giant Sky, expressed her optimism about retaining HBO as part of the Sky offering in the UK. Speaking at the Royal Television Society (RTS) Cambridge Convention, she addressed rumours surrounding a potential sale of Sky Deutschland in Germany and discussed Warner Bros. Discovery’s future strategy for HBO in the UK.
Strong acknowledged that Warner’s contract with Sky is set to expire in 2026. She emphasized Sky’s successful partnership with Warner over the years, building strong audiences and brands for their content. Sky’s ability to efficiently bring audiences to content and share economic benefits makes Strong confident that both parties will find a mutually beneficial way forward.
Regarding a potential sale of Sky Deutschland, Strong stated, “Germany’s got a lot of potential.” She cited the recent appointment of a new CEO for the German business unit as evidence of Sky’s commitment to the market.
Addressing reports of Sky Deutschland being up for sale, Strong explained, “We tend to approach each market depending on where the maturity curve, the consumer, and the regulation optimize our performance.” Sky operates as a brand in six countries and has a presence in 22 additional markets through the SkyShowtime streaming joint venture with Comcast and Paramount Global.
Strong highlighted the varying stages of maturity in different markets. In the UK, Sky offers a fully integrated suite of services, including home insurance. Italy is approximately halfway through its maturity curve, while Germany is earlier in its development.
Despite Germany historically favouring free content, Strong noted that the pay TV market in Germany has been growing, with a 60 per cent increase in paying households in the last five years, largely due to streaming services. She believes there is significant potential for Sky’s streaming service in the German market.
Strong commended Comcast’s acquisition of Sky five years ago, describing it as visionary. She noted that Comcast’s scale provides a solid foundation for Sky to invest and innovate in its business. Comcast generated more free cash flow in 2022 than Netflix, Warner Bros. Discovery, and Disney combined.
Under Strong’s leadership, Sky unveiled Sky Glass, a broadband-powered TV set that eliminates the need for a satellite dish and offers new features like content playlists. This innovation allows for monthly payment plans, akin to iPhone-like revenue opportunities.
Sky Studios Elstree, a production complex north of London, is expected to contribute $3 billion in productions to the UK over five years, reflecting Sky’s commitment to original content.
In her previous appearance at the RTS Cambridge Convention in 2021, Strong pledged to expand Sky’s offerings across continental Europe and enhance diversity within the organization. She emphasized the importance of creating an inclusive environment where diverse voices and backgrounds can thrive.