The report was released as Sky continues to be under the microscope at Ofcom, with the media regulator investigating whether the firm is still "fit and proper" to retain a UK broadcasting licence.
Ofcom's review was prompted by the phone hacking scandal at News International, the publisher owned by Rupert Murdoch's News Corporation, which also owns 39.1% of Sky.
In response, Sky asked Oxford Economics to look at its economic impact in the UK.
The report says that Sky has stimulated economic activity across a wide range of associated companies and industries, concluding: "Sky's footprint is UK-wide and its contribution is felt in almost every part of the country."
Sky is estimated to have contributed £5.4bn to the UK's gross domestic product (GDP) in 2011. It generated £6.4bn in sales, with more than 75% of this revenue said to have been "retained in the UK".
The direct GDP contribution of £2.2bn made by Sky was claimed to be equivalent to 40% of the overall contribution made by the entire TV and radio creative sector in the UK.
For every £1bn raised by Sky directly, a further £1.4bn is said to be generated in the rest of the economy through its purchase of goods and services, along with staff spending.
In 2011, Sky used 4,000 suppliers across the UK, including 645 independent production companies working with Sky Sports and 110 indies in arts and entertainment.
At the end of last year, Sky employed 22,800 people in Britain, including 9,400 in London, 6,430 in Scotland and 1,560 in Yorkshire and Humberside.
Around 2,600 people are employed by Sky in producing and commissioning content, but the firm expects this to grow as it intends to increase its investment in homegrown content to £600m by 2014. Last year, this stood at £450m.
Overall, Sky is estimated to support 118,600 jobs in the UK through its procurement of goods and services, as well as consumer spending out of wage income of its staff.
The company also feels that it has prompted rivals to innovate by ploughing £3.2bn into its digital TV platform, including the introduction of services such as Sky+, high definition and a dedicated 3D TV channel.
In the financial year 2010/2011, Sky directly contributed £941m in tax to the Exchequer, including £337m through corporation tax and business rates.
In total, Sky is estimated to support a £2.3bn tax contribution across its entire operation, equivalent to £36 for every person in Britain.
Jeremy Darroch, Sky's chief executive, said that the company has "grown rapidly" since it 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," said Darroch.
"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."
Darroch added: "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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