Sky moving to IP TV

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#2149428 22-Dec-2018 20:03

tdgeek:

And that's absolutely fine. What annoys me is this who ditch Sky then rant about it. Ive got Sky, Netflix, Lightbox, Curiositystream. I don't watch much SVOD but its there. Sky is sport, but I enjoy the doco channels and CNN, so it suits me. Those that dont want Sky, the content doesn't suit, why are they here complaining?? I have a Honda car, a Suzuki motorcycle , you dont see me searching for forums to bag every other car and motorcycle brand.

Sky is more then Sport, and I've seen Ford and Holden people bag each others cars.

But I guess why people are bagging Sky is because people believe the doco, entertainment content would be available for less subscription cost (and some of it higher picture ,sound quality) if Sky wasn't here!

One make of car, doesn't block others from using a road, Sky buys exclusive rights, then in short term it's not going to be available on cheaper service that doesn't have as high a broadcasting cost.

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#2149445 22-Dec-2018 21:19

rugrat:

One make of car, doesn't block others from using a road, Sky buys exclusive rights, then in short term it's not going to be available on cheaper service that doesn't have as high a broadcasting cost.

That nails it for me. Spot on.

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ockel

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#2149499 22-Dec-2018 22:28

Rikkitic:
rugrat:

One make of car, doesn't block others from using a road, Sky buys exclusive rights, then in short term it's not going to be available on cheaper service that doesn't have as high a broadcasting cost.

That nails it for me. Spot on.

Dtt, Satellite or broadband is the road. Its called carriage. Pick your A road, B road or your motorway.

Content is the vehicle. People want a Maserati but are inly prepared to pay for a Suzuki when Sky provides a Ford.

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#2149508 22-Dec-2018 23:21

Spyware:

tdgeek:

Ive read here that they cant output more HD due to satellite restrictions. Whatever they have that is in HD that isn't "satellited" in HD, you would expect it will be over broadband.

It's already been stated on here many times that Sky can shift 5 transponders to DVB-S2. Shift increases effective bandwidth by 100% (also change of codec from mpeg2 to H.264). Hence why they can drop from 7 to 4 transponders in Optus contract. They choose not to as would be pointless since they have no HD versions of the bulk of the channels due to frugality. And no playout equipment either.

A lot of Sky channels are H.264 already. I am surprised that they have not gone completely H.264 by now, but I just checked a couple of recent recordings and National Geographic is still MPEG2. The changeover to the new decoders was complete months ago and they changed a lot of the SD channels to H.264 then - if there were still old decoders out there, they would not have been able to do that. So I was expecting that all the SD channels would be H.264 now.

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#2149512 23-Dec-2018 00:26

ockel:

Dtt, Satellite or broadband is the road. Its called carriage. Pick your A road, B road or your motorway.

Content is the vehicle. People want a Maserati but are inly prepared to pay for a Suzuki when Sky provides a Ford.

You can go to more then one dealer to get those cars, and in some cases Sky is providing a mini at BMW prices.

Sky 5 delivery SD - Duke delivery HD, yet Sky 5 is behind paywall with adds, like you said in earlier post Sky not going to do something the more expensive way if the increased return is not there.

"I'll guess it's because the incremental revenue from advertising in HD (cf SD) plus the incremental revenue from additional hd subscribers is less than the cost of hd content (cf sd). It would be highly likely that a business case has looked at the differential cashflows from such a proposal."

That might work money wise for them, but of course it's going to cause resentment when people know if on different platform it would've been better picture etc.

tdgeek

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#2149519 23-Dec-2018 08:15

rugrat:

Sky is more then Sport, and I've seen Ford and Holden people bag each others cars.

But I guess why people are bagging Sky is because people believe the doco, entertainment content would be available for less subscription cost (and some of it higher picture ,sound quality) if Sky wasn't here!

One make of car, doesn't block others from using a road, Sky buys exclusive rights, then in short term it's not going to be available on cheaper service that doesn't have as high a broadcasting cost.

Its correct that the Basic channels subsidise sport. They should be $20

Sky doesn't block anyone from sport, you can subscribe to it. Its the price that hurts, but the price is caused by sports bodies wanting an arm and half a leg. If their sports go elsewhere, you will still pay the high price. Plus everyone uses exclusivity. Sky doesnt buy exclusive rights, they buy rights and are TOLD they are exclusive. Netflix, Lightbox, Amazon and so on. The measure is if Sky rorts the pricing, and they dont, that's been prove here many times.

Basic should drop by $30, and sport rise by $30. If they did that, they would get some more subs, which would occasionally mean the odd extra sports sub from time to time

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#2149521 23-Dec-2018 08:20

rugrat:

You can go to more then one dealer to get those cars, and in some cases Sky is providing a mini at BMW prices.

Take rugby and other key sports

Rugby and other key sports tell Sky that no other dealer is allowed to show them, so as we are charging you (Sky) a huge price, you pass that on as its BMW content, and we the sports owners will be charging you (Sky) Maserati prices. We may, and have, given these sports to others, so they can charge Maserati prices

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#2149522 23-Dec-2018 08:30

rugrat:

then in short term it's not going to be available on cheaper service that doesn't have as high a broadcasting cost.

On one of the other Sky threads we looked into the broadcast cost. I assumed it was way up there. Hence, part of the Sky pricing issue is due to satellite costs, dish costs, recorder costs. That was blown out of the water. From memory, one year the broadcasting cost was 90 million. That included maybe 10 for truck rolls, commentating costs. 10 for misc costs. So, at just over 800,000 subscribers, the cost was about $9 per month per subscriber. If that was ALL satellite, thats not much. If you remove that and add CDN, which was stated here as not cheap, the savings from ditching satellite is south of $9 per month, so satellite costs is not the problem. Backed up by Sky retaining Optus, AND going full SVOD on a puck. Later, just an app if you want. it all comes down to sport. IIRC, sports rights are 60% of all their rights costs.

From here, yay, Sky will be SVOD, so they eventually reached 2018. The recorder at $20 per month will stop, hopefully the puck is free, or a one off $100, so a $20 saving per month. Spark Sport competition may force a small drop, say $10, so I might well be saving $30 per month.

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#2149587 23-Dec-2018 12:26

Tdgeek I agree with you.

Sky has cost of decoder, and is probably still subsidising sport, I was referring to cost of non sport content on Sky service to others, who don’t have decoder cost etc.

Thing is when Sky goes IP they still got these costs that others don’t have, they are going to still want to recover them, are they going to add some of these onto the IP customers for the next 10 years plus?

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#2149608 23-Dec-2018 13:36

rugrat: Tdgeek I agree with you.

Sky has cost of decoder, and is probably still subsidising sport, I was referring to cost of non sport content on Sky service to others, who don’t have decoder cost etc.

Thing is when Sky goes IP they still got these costs that others don’t have, they are going to still want to recover them, are they going to add some of these onto the IP customers for the next 10 years plus?

Sorry, understood now.

I agree that non sport content is too expensive, reduce it $30 add $30 to sport. I don't know why they don't do that. Unless they have a lot of users on Basic?

I feel they are going to wear satellite costs, and charge as they are now, and those on IP will get a cheaper price. Depends on CDN costs how much that might be. I read here that Optus is already fully amortised, so the Optus deal might well be quite a lot less tham before. perhaps the overall 2017 satellite cost is similar to 2019 satellite + CDN? If so, no need to reduce prices. BUT the issue despite what many say is the technology, its only ever about the cost, so I feel Sky has to reduce costs and reduce prices. They reduced costs last year and increased the bottom line. More of that is needed. Remove every brick and mortar store except a warehouse/office.

Spark is here soon. I feel satellite prices might ease a little. Maybe recorder rental might reduce. Over IP, I expect same price (that has reduced a little), no rental for the puck, or rent at $15 or buy one off at $100. So, let's say prices drop somewhat, the added value is free multi room (buy extra pucks and use them) and when the fun app is out, the same.

I doubt they can rely on recovering costs as you ask, due to Spark's presence, so they need to reduce costs and reduce prices. That will reduce profit, but they know that cannot be avoided. If they can continue to trim costs, they can plough that back into reduced prices

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#2149612 23-Dec-2018 13:48

Other thing to note with the Satellite is Optus D1 is meant to be End of Life in a couple of years, can only assume they will shift onto Optus 10 or D3?

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#2154225 4-Jan-2019 08:15

SKY can't go full IP TV as that will make at least 50% of their customer base annoyed. As the IP TV quality for them will not be as good as what they get now. As well as the picture quality it will be the problems associated with software or other things associated with the various devices people have to use.

These users are more than likely to be the better customers in turns of revenue.

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#2154235 4-Jan-2019 08:30

Jas777:

SKY can't go full IP TV as that will make at least 50% of their customer base annoyed. As the IP TV quality for them will not be as good as what they get now. As well as the picture quality it will be the problems associated with software or other things associated with the various devices people have to use.

These users are more than likely to be the better customers in turns of revenue.

Full IP TV doesn't mean only IP TV, they stated they are retaining satellite. In this context, full IP TV means you can keep satellite, or dispense with satellite and use a streaming box. Or you could later on, use no box, as they will have a full app which will be a better, higher res SkyGo type of app which you can put on your own steeaming box, example Apple TV4 and use that on TV's or use it on tablets

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#2198805 15-Mar-2019 15:26

Any update on when this "Puck" will be released?, the only articles I can find are back in December which says released early in the new year. Anyone in the know? Cheers.

IJD

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#2198880 15-Mar-2019 16:50

ianajmes: Any update on when this "Puck" will be released?, the only articles I can find are back in December which says released early in the new year. Anyone in the know? Cheers.

And here was me just getting a little bit excited that a post in this thread was an announcement of their new service (given that reports from last April said it would be available in a year). Seems the only thing happening in Sky is a mass exodus of senior staff (CEO, Direct of Sport and CFO have all left this year).

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