News on the Block catches up with the new Head of Sky Communal TV, Brendan Hegarty.
NOTB : With the digital switch over (DSO) now almost complete, what has been the take-up of communal systems in blocks of flats?
B: Obviously DSO has been very good for us, and the industry over the past year or two. To be honest our view is to look at what comes next. With the industry people I speak with, there seems to be a certain doom and gloom about what is coming after DSO. We take a very different view. For us, there is still massive opportunity in that we have got multiple dwelling units (MDU) for Sky. Indeed it is one of the fastest growing areas of our business at the moment. Sky, as you know are a maturing market and this is part of the overall market for us. But flats and multiple dwelling units are still growing. So with the end of the DSO, we are looking to plan on how we tackle that opportunity going forward and how to provide an excellent service to our customers.
NOTB: In terms of the take up, what do the numbers look like?
B: Next year we are planning to enable between another 40,000 to 60,000 units which is pretty much what we did last year. So, we are planning to carry on at the same pace. That is regardless of DSO coming to an end. Obviously to do that we are assessing internally how we are set up because we may need to make some changes to maintain that level of enablement - but that is our plan. We don’t want to let up on that growth rate.
NOTB: Is the digital switchover now finished?
B: There are a couple more that are not completely finished, but the big ticket areas geographically are done.
NOTB: Do you think that will now give more impetus to switchover because the analogue signal cannot be relied on?
B: I think so. I think there is a whole lead time that is not fully understood by everyone. So when DSO happens – the take-up in terms of actual subscribers can take a bit longer. When we can, we try and market to the blocks that we have enabled, working with the managing agents. We generally see a bit of a spike the month after putting a system into a block, and then there will be a bit of a lag, but there is still lots to do after their DSO system has been installed.
NOTB: In acquiring new customers?
B: Yes, but the key thing is that there are a lot more blocks now ready and residents have a choice of TV going forward..
NOTB: Where is the focus next for Sky Communal TV?
B: If we take a step back and look at the entire market there are approximately three and a half million flats in the country. In terms of the headroom available to Sky where we don’t have a community system installed, there is theoretically a huge pocket of blocks still available to us. That is our starting point really. Yes, the switch over has happened and yes, it has been a catalyst to us but there is still a huge untapped market there for us. We want to work with managing agents on educating them in terms of getting communal systems ready for their residents. We are quite positive going forward.
NOTB: What about new build developments?
B: We definitely want to get more into that.. New build is definitely a medium term play. We want to get set up for the next few years. Some of these new builds can take up to ten years but some of them are already started. So, we are actively engaging in talking with developers. To be honest, we are quite flexible in terms of trying to understand what the best solution is for them. The conversations I have had are that developers are keen to provide an excellent customer service for residents. When they purchase a flat they are buying more than bricks and mortar, they are potentially buying a package of services so that when they open the door broadband is working, the TV is working etc. That is a fantastic selling point for the developers and obviously we are talking to them on how we can best provide that. So, absolutely new build is a big area of focus for us in the next couple of years.
NOTB: What in particular makes the Sky communal system better?
B: Over the years we have built up a very strong track record of quality installations. We have very rigorous standards that all of our local approved installers have to adhere to and we quality test these installations rigorously. We have a whole team doing that and our local installers also have their own teams. So there is a double quality test process in place. That has built up over time, because we see that as critical to the service offering that we give managing agents. We want to be able to give them peace of mind that the installation will be of the highest quality and they are not going to have any problems afterwards.
NOTB: What about Sky’s claim concerning ‘superior service’?
B: We have worked on our model in terms of how we work with managing agents.. For example, now there are a few aspects to the service, we can offer a solution to the entire portfolio. Previously, we might have had a slightly different approach block by block. Now we basically say to a managing agent, “Regardless of the size and type of your portfolio, we can look at the whole thing for you”. Secondly we provide a dedicated project manager for the project to deal end to end with the entire process. We start by understanding resident’s issues, questions and concerns (which can be quite a tricky issue), through to what the best solution is for each of their blocks. The third aspect of the service is that we have a local network of installers that we have been working with for years. They are geographically based, so they know the area they are working in very well. They know the flats and the blocks individually. They have that kind of local knowledge which is really important.
NOTB: What do you think your previous commercial experience brings to the role?
B: I come from the mobile industry which is a bit like Sky in terms of reaching maturity.. Subscribers become more difficult to find, so it is about understanding where there are pockets of growth. That was the part of the business I was in. From that perspective this is very similar. There are still opportunities for growth but it is about identifying them, making them visible and making sure that the correct focus and investment is channelled through to those areas of growth. That is my role and my responsibility now - to make sure that the multiple dwelling units are given that focus.
NOTB: What has Sky learned about the blocks of flats market?
B: My observations early on are that this market is complex. It is much more complex than the standard installations Sky does to single dwelling units – houses essentially. There is a very different value chain or supply chain. You have still got the residents, and that is the most important thing, to be able to satisfy their needs. But there are also managing agents and developers. So, there is a whole host of different stakeholders that we need to deal with. Over the past few years of getting more entrenched in this industry we have learned what the main points might be, we have learned what the requirements are of each of those stakeholders in the process and we have adapted our model accordingly to make sure that we are providing the best service. Ultimately, we want to be seen to provide a really excellent service across the system which is competitively priced but ultimately satisfies not just the residents’ needs but also those of managing agents. That is what will essentially win us more business going forward. And, for us, that is what it is about..
NOTB: How are you enjoying your role?
B: It is really fascinating. Personally, for me, the reasons why this role is very interesting is because it is not just about sales at all, it is about service, it is about marketing, and operations.. It is effectively like a mini business unit and I think the way Sky has set this area up is to recognise that complexity that I have mentioned. You can’t just treat it as a sales channel. So it has been set up as its own mini business unit to recognise that complexity. It has worked very well.
NOTB: What about the different stakeholders in the industry?
B: It is unusual. We just need to make sure we find the right solution for everyone involved.
We are set-up very well at the moment. We have got good momentum. We have got good buy in to push this area forward and the focus going forward is on service and quality. The switchover has been a buzz word for the last couple of years, but we are moving on now and not letting up. There is good reason for all that.
