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MUMBAI: UK pay TV service provider Sky is estimated to support
a £5.4 billion contribution to UK GDP in calendar 2011.
The
impact made by Sky on the UK economy is revealed for the first
time in an independent study conducted by the leading economic
consultancy, Oxford Economics.
The
report, The Economic Impact of Sky on the UK, finds that Sky
makes a 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.
In
2011, Sky generated sales of £6.4 billion and over 75
per cent of this revenue was retained in the UK.
Sky’s
direct contribution to GDP of £2.2 billion is equivalent
to around 40 per cent of the contribution made by the entire
TV and radio creative sector in the UK.
For
every £1 billion Sky contributes directly to GDP itself,
it generates another £1.4 billion in the rest of the
economy through its purchase of goods and services and staff
spending their wages.
In
2011 Sky used 4,000 suppliers across the UK, including 645
independent suppliers in sports production and 110 independent
producers in entertainment and the arts.
"Sky’s
footprint is UK wide and its contribution is felt in almost
every part of the country," the report said.
At
the end 2011, Sky employed 22,800 people in the UK, more than
half as many as the entire pharmaceuticals industry. This
included 9,400 people in London, 6,430 in Scotland, and 1,560
in Yorkshire and Humberside.
According
to the report, 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. By the end of 2011, Sky had already increased its
UK content spend to £450 million a year.
In the last three years, Sky has hired 3,800 young people
(16 to 24 years), including nearly 300 graduate trainees and
apprentices.
Sky employs 800 engineers in software development and testing,
representing 1 per cent of all people employed in the UK’s
software development industry.
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 wage income of its staff. This includes
1.2 per cent of all employment in London and 0.6% of all jobs
in Scotland.
The
study also pointed out Sky's contribution to tax revenues.
These include:
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In the financial year 2010/2011, Sky directly contributed
a total of £941 million to the Exchequer.
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Of this, £337 million came through corporation tax and
business rates, with the balance collected on behalf of HM
Treasury through employees’ labour taxes and customers’
VAT payments.
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In total, Sky is estimated to support a £2.3 billion
contribution to tax revenues, including Sky’s procurement
of inputs and direct and indirect staff spending is included.
This is equivalent to £36 for every person in the UK.
Sky
CEO Jeremy Darroch said, "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.
"This
report from Oxford Economics measures and explains the scale
of our economic impact for the first time. 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. As we look
ahead, our appetite to invest remains strong and we hope to
contribute even more in the future."
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