Sky Basic split into two packages

Forums › Sky, Neon, Lightbox › Sky Basic split into two packages

1 | ... | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | ... | 19

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1966933 2-Mar-2018 10:21

What's the general feel for whether this will be successful or not? The goal is to increase subscribers, the cost is reducing the revenue

If 10 subscribers go to Starter, thats $250 down the gurgler, so they need almost 5 new sport subscribers at the base 24.91 + 29-90. Or if most will get MySky at 15 then they need about 3.5 new subscribers. They will pick up a little on HD fees and lose a little for those that will now get Soho for free, so lets say will they get 3.5 new subscribers for every 10 that take the $25 saving?

Also, those that just cant manage Sport, the entry level cost is now $55, down from $80. No HD, must watch live, but $55 for SkySport is quite compelling. Full flavour at $104.80 down to $80 is also quite compelling

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1966936 2-Mar-2018 10:23

networkn:

Does anyone have handy the numbers that Sky pays for Sports right in total? Or have any idea what sport costs Sky in total, from truck rolls and commentaries, etc? It would be interested to know what the ACTUAL cost per Sport Subscriber would be. What those who only want Sport, would need to pay.

Off the top of my head about 350 million was rights, I read once that sport was 60% + of that. A couple of years ago Transmission costs were 99 million, this includes satellite and broadcasting (truck rolls, TV production)

I doubt there is any public info that is more detailed

Edit

Wild ballpark for me is 250 million rights + 20 million broadcasting/truck rolls

networkn

Networkn
32873 posts

Uber Geek
+1 received by user: 15475

ID Verified

Trusted

Lifetime subscriber

#1966940 2-Mar-2018 10:27

So if we work out that based on that, $270M + 60M (60% of production and transmission) split amoungst 500K of Sky Subscribers (I don't know how many Sky people have sport) then as far as I can work out, that's $45 a month for Sport alone. Sound right?

Add $10 for HD, and $10 for a decoder, you are at a raw cost of $65 a month. They charge $30, so either my sums are really badly out, or the rest of the service is heavily subsidising sport.

stinger

628 posts

Ultimate Geek
+1 received by user: 169
Inactive user

#1966941 2-Mar-2018 10:28

tdgeek:

What's the general feel for whether this will be successful or not? The goal is to increase subscribers, the cost is reducing the revenue

If 10 subscribers go to Starter, thats $250 down the gurgler, so they need almost 5 new sport subscribers at the base 24.91 + 29-90. Or if most will get MySky at 15 then they need about 3.5 new subscribers. They will pick up a little on HD fees and lose a little for those that will now get Soho for free, so lets say will they get 3.5 new subscribers for every 10 that take the $25 saving?

While revenue (and ARPU) is an important figure, profit is the key. While the starter pack is cheaper than the old Basic package, most (maybe all) of the loss in revenue will be matched by a reduction in costs of those channels.

vexxxboy

4339 posts

Uber Geek
+1 received by user: 2077

#1966943 2-Mar-2018 10:31

tdgeek:

networkn:

Does anyone have handy the numbers that Sky pays for Sports right in total? Or have any idea what sport costs Sky in total, from truck rolls and commentaries, etc? It would be interested to know what the ACTUAL cost per Sport Subscriber would be. What those who only want Sport, would need to pay.

Off the top of my head about 350 million was rights, I read once that sport was 60% + of that. A couple of years ago Transmission costs were 99 million, this includes satellite and broadcasting (truck rolls, TV production)

I doubt there is any public info that is more detailed

Edit

Wild ballpark for me is 250 million rights + 20 million broadcasting/truck rolls

just read that Sky has spent over a billion on Rugby since they got the rights to broadcast it and 50% of what Rugby makes a year to run it comes from Sky, so it is a very important partnership , both companies need each other to survive.

Common sense is not as common as you think.

trig42

5889 posts

Uber Geek
+1 received by user: 2094

ID Verified

#1966947 2-Mar-2018 10:34

Herald article today saying the NZRugby makes nearly $100m a year from TV rights.

I am unsure how this is split up, but Sky must pay a major majority of that. I'd assume they make some money from other regions too (NH, US etc.).

Lego

Shop now for Lego sets and other gifts (affiliate link).

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1966950 2-Mar-2018 10:36

networkn:

So if we work out that based on that, $270M + 60M (60% of production and transmission) split amoungst 500K of Sky Subscribers (I don't know how many Sky people have sport) then as far as I can work out, that's $45 a month for Sport alone. Sound right?

Add $10 for HD, and $10 for a decoder, you are at a raw cost of $65 a month. They charge $30, so either my sums are really badly out, or the rest of the service is heavily subsidising sport.

Basic subsidising sport has always been the case. I've always maintained that Basic should be $20, and Sport say $60, so no change for us sports buffs. Basic then becomes a NF/LB friendly price. Its also a price that is a friendly price just to get Basic for some addon variety. Sky wise these users may buy the odd extra service at times.

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1966952 2-Mar-2018 10:44

stinger:

tdgeek:

What's the general feel for whether this will be successful or not? The goal is to increase subscribers, the cost is reducing the revenue

If 10 subscribers go to Starter, thats $250 down the gurgler, so they need almost 5 new sport subscribers at the base 24.91 + 29-90. Or if most will get MySky at 15 then they need about 3.5 new subscribers. They will pick up a little on HD fees and lose a little for those that will now get Soho for free, so lets say will they get 3.5 new subscribers for every 10 that take the $25 saving?

While revenue (and ARPU) is an important figure, profit is the key. While the starter pack is cheaper than the old Basic package, most (maybe all) of the loss in revenue will be matched by a reduction in costs of those channels.

I read that. But the revenue of those feeds are $25 per person per month for Discovery etc sounds pretty high. So they must pay per subscriber, but that seems too high. What I read I think was some.

dafman

4056 posts

Uber Geek
+1 received by user: 2652

Trusted

#1966988 2-Mar-2018 11:44

vexxxboy:

just read that Sky has spent over a billion on Rugby since they got the rights to broadcast it and 50% of what Rugby makes a year to run it comes from Sky, so it is a very important partnership , both companies need each other to survive.

Like most relationship breakups, there will be the grief, the mourning, the 'I can't live without them.' And like most relationship breakups, time will heal the wounds and NZ Rugby will learn, move on and get on with its life.

GV27

5978 posts

Uber Geek
+1 received by user: 4212

#1966989 2-Mar-2018 11:48

dafman:

vexxxboy:

just read that Sky has spent over a billion on Rugby since they got the rights to broadcast it and 50% of what Rugby makes a year to run it comes from Sky, so it is a very important partnership , both companies need each other to survive.

Like most relationship breakups, there will be the grief, the mourning, the 'I can't live without them.' And like most relationship breakups, time will heal the wounds and NZ Rugby will learn, move on and get on with its life.

Which will be to the detriment of most sports fans. If you follow one sport, then a subscription service might be cheaper. But shelling out for several will add up very quickly.

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1966991 2-Mar-2018 11:55

GV27:

dafman:

vexxxboy:

just read that Sky has spent over a billion on Rugby since they got the rights to broadcast it and 50% of what Rugby makes a year to run it comes from Sky, so it is a very important partnership , both companies need each other to survive.

Like most relationship breakups, there will be the grief, the mourning, the 'I can't live without them.' And like most relationship breakups, time will heal the wounds and NZ Rugby will learn, move on and get on with its life.

Which will be to the detriment of most sports fans. If you follow one sport, then a subscription service might be cheaper. But shelling out for several will add up very quickly.

Very true. Sky has a lot of different sports playing, so sports subscribers are subsiding the other sports they don't watch. But Sky paying one set of bulk rights at volume discounts means that its cheaper overall, even though I subsidise the many sports I dont view. When a major event happens such as RWC, Olympics, America's Cup, Sky wear that rights cost as there is no topup from subscribers or PPV. So its not all take take take at all. Id rather be a teeny part of a bulk discount buyer, than have to pay full noise for a one citizen charge

EDIT

This is an example where a monopoly is better. The check and balance is price, if its too much we walk. Sadly for Sky its too much so we walk anyway, but it isnt too much if you look at their financial accounts. Maybe one day Sky becomes Sky Sports

HP

Shop now for HP laptops and other devices (affiliate link).

networkn

Networkn
32873 posts

Uber Geek
+1 received by user: 15475

ID Verified

Trusted

Lifetime subscriber

#1966992 2-Mar-2018 11:55

dafman:

vexxxboy:

just read that Sky has spent over a billion on Rugby since they got the rights to broadcast it and 50% of what Rugby makes a year to run it comes from Sky, so it is a very important partnership , both companies need each other to survive.

Like most relationship breakups, there will be the grief, the mourning, the 'I can't live without them.' And like most relationship breakups, time will heal the wounds and NZ Rugby will learn, move on and get on with its life.

You are so bent out of shape over your completely irrational hatred of Sky, you are failing to see the consequences of such a thing. Instead of paying $30 a month for 20 sports, you'd be paying $100 a month for 5 sports @ $20 each (Or much much more as is more likely).

Oh wait, you think all sports should be $9.95 a month! My mistake.

tdgeek

30048 posts

Uber Geek
+1 received by user: 9455

Trusted

Lifetime subscriber

#1966997 2-Mar-2018 12:03

networkn:

dafman:

vexxxboy:

just read that Sky has spent over a billion on Rugby since they got the rights to broadcast it and 50% of what Rugby makes a year to run it comes from Sky, so it is a very important partnership , both companies need each other to survive.

Like most relationship breakups, there will be the grief, the mourning, the 'I can't live without them.' And like most relationship breakups, time will heal the wounds and NZ Rugby will learn, move on and get on with its life.

You are so bent out of shape over your completely irrational hatred of Sky, you are failing to see the consequences of such a thing. Instead of paying $30 a month for 20 sports, you'd be paying $100 a month for 5 sports @ $20 each (Or much much more as is more likely).

Oh wait, you think all sports should be $9.95 a month! My mistake.

F1 is going this way but not for NZ just yet. USD12 so about NZ$17, + GST so $20 near enough. That's one sport. $250 a year seems typical for this. Wont take much before it sucks up my entire Sky bill

networkn

Networkn
32873 posts

Uber Geek
+1 received by user: 15475

ID Verified

Trusted

Lifetime subscriber

#1966999 2-Mar-2018 12:07

tdgeek:

F1 is going this way but not for NZ just yet. USD12 so about NZ$17, + GST so $20 near enough. That's one sport. $250 a year seems typical for this. Wont take much before it sucks up my entire Sky bill

I'd get much much better coverage of World Squash with a $10USD subscription and be able to watch it anywhere, but that's near enough to $15 a month NZD.

I'd bet my bottom dollar Rugby would be $30-50 a month. Would be region locked for sure.

I would greatly appreciate the ability to watch Rugby in HD whilst out of the country. I missed 2 of the Lions tests as a result of not being able to get a live view. had to watch the commentary on my phone. Quite a loss for this significant Rugby fan. Lions tour is maybe 2nd behind WC.

dafman

4056 posts

Uber Geek
+1 received by user: 2652

Trusted

#1967012 2-Mar-2018 12:35

tdgeek:

This is an example where a monopoly is better ...

With due respect, you can't say that because you don't know what the counterfactual is. You're guessing at best within a world where technology and entertainment are changing ever so rapidly.

1 | ... | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | ... | 19