BSkyB Offers a Picnic

UK satellite TV and broadband provider to launch Picnic brand for package of broadband, phone, and digital terrestrial TV services

October 2, 2007

3 Min Read

LONDON -- Sky has today announced further details of its plans to offer broadband, telephone and digital terrestrial television services under an entirely new brand to customers across the UK. The new business will operate under the Picnic brand and will offer customers a variety of simple, flexible options to combine the services that they want.

Building on the success of Sky TV, Sky Broadband and Sky Talk, Picnic will offer customers an easy way to benefit from value and innovation in home communications and entertainment. It will take advantage of Sky's capabilities in areas such as marketing, content and customer service and its existing infrastructure including an unbundled telecoms network that reaches 70% of UK households.

Key features of Picnic will include:

  • TV, broadband and telephony

  • Choose 1, 2 or 3 services in any combination

  • Transparent prices and great value

  • Fast broadband access with up to 16 Mbps download speeds

  • Money-saving call packages

  • Instant access to improved TV choice through an aerial

  • Popular channels including Sky Sports 1, Sky Movies, Sky One, a children's channel and a factual channel.

  • Access to Freeview channels



Sky believes that Picnic represents an attractive commercial opportunity; expanding its addressable market, complementing its existing offering and generating a healthy financial return.

The decision to proceed with the launch of Picnic is subject to the outcome of Ofcom's review of the proposed increased choice of TV programming. Ofcom has said that it plans to launch a consultation on the initial licence changes later this autumn.

Customers will access the Picnic TV service through a new generation of digital set-top boxes. The new boxes will help to lead future innovations on the digital terrestrial television (DTT) platform such as the adoption of MPEG-4 compression standards, which allow viewers to benefit from an increased choice of channels. The Picnic TV service will initially consist of 3 MPEG-2 video streams but, subject to approval by Ofcom, Picnic aims to move to MPEG-4 and add a fourth channel dedicated to Sky News.

Continuing with the existing “horizontal market” model for DTT equipment, the Picnic compatible boxes will be produced by multiple manufacturers and sold by a variety of retailers. Manufacturers will be responsible for the specification of their boxes and will decide which additional features to include, such as PVR functionality or the ability to receive pay-TV services from other providers. Picnic does not intend to subsidise the boxes and retailers will be responsible for setting prices, which will therefore be the same for customers who subscribe at the time of purchase and for those who want the ability to upgrade in the future.

The initial manufacturer will be Sagem and it is expected that others will follow shortly after launch. In addition, Picnic aims to make its TV service available on future generations of PCs.

Picnic will announce further details about its services closer to launch. These will include the simple and flexible pricing options, full channel line-up and details of the broadband and telephone products.

James Murdoch, Sky's Chief Executive, said:

“The launch of Picnic will be a big step forward for customers who are hungry for value and simplicity. We are looking forward to the conclusion of the regulatory approval process so we can get going delivering a great service and real savings to customers.”

British Sky Broadcasting Group plc

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