Sky : Targeted TV advertising strategic partnership

Sky and Virgin Media announce strategic partnership to accelerate

brand-safe targeted TV advertising

· Partnership to give access to more than 30 million targetable TV viewers in the UK and Ireland

· More impactful targeted TV ad campaigns, underpinned by intelligent data

· Transparent, brand safe environments and trusted measurement for advertisers

Sky and Virgin Media today announce a strategic partnership that will enable businesses both big and small to benefit further from advanced TV advertising across both Virgin TV and Sky platforms. Advertisers will be able to target a potential audience over time of more than 30 million viewers; putting it on par with leading social networks.

By using market-leading targeting technology, underpinned by in-depth customer data, the partnership will transform the scale of addressable TV advertising in the UK and Ireland, giving brands the ability to target audiences whilst utilising the attractive, quality, trusted, and brand safe environment of TV.

The partnership covers both targeted linear and video on demand (VOD) TV advertising, with Virgin Media making use of technology developed by parent company, Liberty Global, as well as Sky's ground-breaking and award winning Sky AdSmart. The deal also ensures as targeted TV expands onto new platforms that there are consistent capabilities, currencies and targeting, which is hugely beneficial to clients.

Virgin Media's Pat Kiely and Sky Media's Jamie West will be leading the development of the strategic partnership.

Both parties intend that additional sales houses and channels will benefit from AdSmart technology over time.

Virgin Media's Chief Executive Tom Mockridgecommented:

'Quality programming deserves to be supported with quality advertising. In partnering with Sky we're putting the UK and Ireland at the forefront of TV advertising innovation. We're giving consumers advertising that is more relevant to them and giving brands a trusted destination to deliver intelligent, tailored TV campaigns to a targeted audience.'

Andrew Griffith, Sky's Group Chief Operating Officer commented:

'Addressable TV is the high quality, brand safe and transparent medium that leading brands have already been adopting in their thousands. Today's partnership takes that to the next level with the extension of AdSmart to millions more homes meaning more relevant ads for Virgin customers and a larger platform for advertisers.'

ENDS

Analyst/ Investor Enquiries

Sky

Robert Kingston

investor-relations@sky.uk/ 020 7032 3726

Media Enquiries

Sky

Harrison Kelly

Harrison.Kelly@sky.uk/ 0333 100 2333

Virgin Media

James Lusher

james.lusher@virginmedia.co.uk /07870 380174

Notes to Editors

· A single, one-stop buying point through Sky Media will exist in the UK for targeted TV advertising with impressions served across Virgin Media and Sky's addressable set-top boxes.

· In Ireland, Sky AdSmart is currently in a test and learn phase and will be rolling-out over the coming months.

· Virgin Media Solutions and Sky Media will continue to operate independently and to compete in the TV advertising sector outside of the partnership including non-targeted linear airtime, sponsorship, self-promotional advertising and VOD using traditionally traded audiences.

· Virgin Media reaches more than 4m households with its TV service in the UK and Ireland, with Sky reaching 11m households. Average household occupancy is 2.3 people (ONS). Note that this is a potential audience that could be reached as the respective applicable set-top box rollout increases through the duration of the partnership.

· NBC Universal is set to become the latest broadcaster to join the Sky AdSmart family with their portfolio of channels including Universal Channel becoming 'AdSmart enabled' in June.

· In February 2017, Channel 5 joined Sky AdSmart becoming the first PSB to join the platform

· There are currently over 100 AdSmart enabled channels including all Sky's channels as well as Media Partners including Fox International Channels ( Fox, Nat Geo), A+E Networks (History, Lifetime, Crime + Investigation), Viacom (MTV, Comedy Central, Channel 5)

· Sky AdSmart is helping grow the TV market with 73% of advertisers either being new to Sky or New to TV. Sky AdSmart also has a 75% return rate.

· Pat Kiely is Managing Director of TV3 in Ireland.

· Jamie West is Group Director of Advanced Advertising at Sky Media.

About Sky

Sky is Europe's leading entertainment company, serving 22 million customers across five countries - UK, Ireland, Germany, Austria and Italy. The company has annual revenues of £12 billion and is Europe's leading investor in television content with annual programming spend of over £5 billion.

From exclusive partnerships with HBO and Showtime, to Sky's own original programming, Sky offers the best and broadest range of content along with the best viewing experience to suit each and every customer. Whether that's through the multi-award winning next generation box, Sky Q, or Sky's contract-free online streaming service, NOW TV, customers have access to the latest movies, drama, sports and kids entertainment wherever and whenever they like. This is all supported by Sky's best in class customer service.

Sky's success is not just based on what the company does but how it does it. Named as one of the Top 10 Green Companies in the World by Newsweek, one of the world's most recognised rankings of business's environmental performance,Sky ensures its responsible business strategy is embedded right across the group.

Sky has over 30,000 employees and is listed as one of The Times Top 50 employers for women. Sky is listed on the London Stock Exchange (SKY).

About Virgin Media

Virgin Media offers four multi award-winning services across the UK and Ireland: broadband, TV, mobile phone and landline.

The company's dedicated, ultrafast network delivers the fastest widely available broadband speeds to homes and businesses. This is being expanded through Virgin Media's Project Lightning programme.

Virgin Media is part of Liberty Global, the world's largest international cable company, with operations in more than 30 countries.

Virgin Media Solutions

Virgin Media Solutions is Virgin Media's advertising and brand solutions division working with advertising agencies and advertisers on behalf of all Virgin Media platforms and channels.

In Ireland, Virgin Media Solutions represents the largest commercial broadcaster in the market, TV3. TV3 Group is wholly owned by Virgin Media and includes channels TV3, 3e and be3.

Virgin Media Solutions is currently partnering with the Liberty Global Advanced Advertising team and collaborating on proprietary data analytics tools for enhanced advertising opportunities on Virgin Media platforms and channels.