Sky Calculates Its Contribution To UK Economy
PayTV broadcaster Sky
contributed £5.4 billion to the UK economy in 2011, according to a study conducted by the leading economic consultancy, Oxford Economics.
The report, entitled The Economic Impact of Sky on the UK, finds that Sky makes “a significant contribution to the economy in terms of GDP, jobs and taxes paid. It also shows how the company has stimulated economic activity in a wide range of associated companies and industries, through relationships with thousands of UK suppliers and business partners.”
The study claims that Sky’s direct contribution to GDP is £2.2bn “equivalent to around 40% of the contribution made by the UK’s entire TV & radio creative sector”. This generates another £3.2bn across the rest of the economy through its purchase of goods and services and staff spending wages.
Oxford Economics goes on to say that Sky used 4,000 suppliers across the UK last year, including 645 independent suppliers in sports production and 110 independent producers in entertainment and the arts.
As for its contribution to jobs, “Sky employed 22,800 people in the UK. 2,600 people are employed by Sky in producing and commissioning content. This is set to grow as Sky increases its investment in original British content to £600 million by 2014. In the last three years, Sky has hired 3,800 young people (16 to 24 years), including 300 graduate trainees & apprentices.”
In total, Sky is estimated to support 118,600 jobs in the UK through its procurement of goods and services and consumer spending out of the wages of its staff. This includes 1.2% of all employment in London and 0.6% of all jobs in Scotland.”
The study is designed to remind people of the positive contribution Sky makes - at a time when the organisation has come under severe political pressure. Jeremy Darroch, Sky’s Chief Executive, commented: "This report from Oxford Economics measures and explains the scale of our economic impact for the first time. We have grown rapidly since our business was established just over 20 years ago. Along the way we have taken risks, invested billions of pounds and been a driving force for innovation and change in our sector. As a result we have transformed UK consumers’ experience of television and home communications, while generating significant returns for our shareholders and contributing positively to the UK economy as a whole. We hope that Sky’s story provides a good example of the important contribution that a successful British company can make, particularly at a time when economic growth is harder to come by."