Sky moves in to home insurance to steal a march on its streaming competitors
Sky is to start selling home insurance as the media giant tries to branch away from TV amid fierce competition from streaming rivals.
It is understood the company will begin selling insurance products on price comparison sites from this week ahead of a full rollout in January.
The venture, dubbed Sky Protect, will be underwritten by Zurich UK and will initially be available as a standalone product.
The launch marks Sky’s first move into Britain’s £7bn home insurance market and reflects efforts by bosses to broaden its customer base with new offerings.
It follows a similar move by BT’s mobile network EE, which inked a deal with Verisure earlier this year to provide home security services.
The launch comes at a challenging time for Sky, after its valuation was written down by $8.6bn (£7.4bn) – or roughly a quarter – by US owner Comcast in October.
Sky’s sales plunged almost 15pc in the third quarter, dragged down by a weaker pound, while the deepening cost-of-living crisis cast doubts over future cash flow.
The company has increasingly looked to diversify its business model amid a steady decline in the number of subscribers for its lucrative satellite offering in recent years.
Most of Sky’s customer growth now comes from its Now TV streaming service and its mobile and broadband packages, while the company has sought to cut costs in negotiations with sports rights holders and channel providers.
It has also invested in new products such as the Sky Glass television, which brings together different streaming services into one platform, and its satellite-free Sky Stream box.
Growing competition from rivals such as Netflix, Apple and Disney has prompted the group to step up its production budget as it seeks to cash in on the success of original shows such as Chernobyl. Sky Studios has spent more than £500m in the UK alone this year.
It has also benefited from series such as Game of Thrones and Succession, to which it holds rights through a content partnership with HBO.
However, the move into insurance signals a fresh push by UK chief executive Stephen van Rooyen to expand the Sky brand into new areas and reach more customers.
