Threats for Sky include intense competition, regulations, and also dependence on British Telecom. Sky faces stiff competition in all the markets it operates. The competition in widespread i.e. from DTH providers, cable operators, terrestrial service providers, internet and telecommunication service providers. There is a possibility of an increase in DTT services by 2012 from its existing 75%. Sky faces stiff competition in this aspect from Virgin Media, British Telecom, Boxer DTT, and UPC Broadband. This could adversely affect the market share of the group and could also increase the pressure in the pricing aspect. Change in any regulation relating to broadcasting segment could affect the group by limiting their ability for competing effectively in their designated market. The Sky group is depended on British Telecom for some of their services such as Sky Talk and broadband connectivity. This dependence could affect the operating performance and service capability of Sky if British Telecom fails in proving timely offering at a reasonable amount of cost (Datamonitor, 2009). Macro-level analysis of Sky can be conducted by using PESTEL analysis. The political aspect is a major issue for Sky. The sky is predominantly depended on the political scenario of United Kingdom. Therefore any change in regulation and planning policy of the United Kingdom could force Sky to change their growth plans. The recent governmental change in the United Kingdom which has seen ministerial changes could bring in new political challenges for Sky (Firth amp. Colley, 2006). Economic factors can have a major effect on the growth and progress of Sky. The recent recession led tough economic condition affected Sky. The UK economic scenario has a major influence on the prospects of Sky.
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