Sky shares plunge

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#1410799 22-Oct-2015 07:55

mattwnz: Someone on 100k per year who likes their sport, and can get most of it on sky are unlikely to move to a streaming platform at the moment. But that will change as streaming becomes easier, and more content is shared around different providers.

You're forgetting that someone on $100k per year isn't necessarily flush with cash...particularly in Auckland. And they may have kids that are less lazy, more tech-savvy and prepared to stream all of their content.

And there's a massive dilution of sports coverage now, too - Premierleaguepass, Golf and NFL are all available online, as is Baseball and Basketball.

If I were to ditch Sky right now, I'd only really be missing out on the odd kids programme, some A-League football and the RWC in HD - most of what I watch is available on Freeview. This is clearly evidenced by looking at my Planner on my Mysky+ - about 7/8 of the programmes are from Freeview channels - and I pay over $100 a month for the privilege.

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andrew027

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#1410809 22-Oct-2015 08:25

Sky has stuck to their original business model for too long. This was easy when they had a monopoly on content but with so many streaming options available now and Sky losing rights to content, they are seeing the results of not investing in new technologies [Edit: and keeping their prices high, and channel bundling so subscribers pay for content they may not want to watch]. I was talking to someone a couple of weeks ago and he suggested there is a "demographic" for Sky - younger people or middle aged people who are moderately tech savvy use other options for getting their content and older people (I'm thinking my parents' generation, so let's say late 70s and up) don't seem to be bothered. As the younger "streaming" generation grows up, Sky's target audience shrinks.

I originally got Sky many years ago because I was living in an area where free to air TV reception quality was poor on two channels and non-existent on another; getting One, 2 and 3 via satellite was a good option, and sport and movies were a bonus. When I moved I kept it for the sport, as Sky was the only place to see a lot of good sport content, and the wife liked the movies and my daughter watched a lot of the children's channels. Now my favourite sport (Premier League football) isn't on, unless you're an Arsenal, Chelsea, or Manchester team supporter (I'm not) and there are many options for streaming TV and movies and my daughter has grown out of Nickelodeon and Disney so we watch it less and less. I agree with earlier posts that say Sky may have underestimated how many people will cut the chord after the Rugby World Cup - if they were to lose another major sport (e.g. say Coliseum Sports Media got the NRL) it could be devastating.

Jaxson

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#1410813 22-Oct-2015 08:29

mattwnz:

It is also somewhat ironic and backward, that 4 years ago, NZers enjoyed HD coverage of the RWC, via free to air channels. Now most watchers are watching the RWC in SD on prime.

http://newzealandfilmtv.co.nz/2008/08/beijing-olympics-tv-coverage-in-hd-through-freeview/

Granted 720P at the time, but 5.1 surround sound.

From mammary Prime was Sky's ticket to be allowed to sell the likes of all blacks games. Prime gives them the ability to still make content available free to air to the NZ public, albeit delayed. That seemed fine at the time, but now we take a hit not only on the delay of the coverage, (normally starting live but falling behind with ads over time), but also the quality of the picture and sound. Sky still is the monopoly on major sport in NZ, but it's good to see it finally having some more realistically priced competition nowadays.

Prime showing the RWC finals matches live has been good, but as others have mentioned, this may have been due to an embargo on ads on Sunday mornings. Thank the lord for that...

hairy1

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#1410880 22-Oct-2015 09:50

I feel a bit sorry for Sky in some ways.

They have a satellite delivery platform which was hugely expensive to implement and to maintain.

They must keep it as it is the most efficient method of delivering content to our long narrow spread out country.

The streaming platforms have all had most of their delivery mechanism built by others (the internet).

They really are stuck between a rock and hard place. They have to build a streaming service to match the other content providers while still maintaining the satellite platform.

We live in very interesting times alright. The next few years are going to be very interesting. I am glad I am a consumer and not a provider!

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hairy1

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#1410881 22-Oct-2015 09:52

Actually maybe not. Perhaps as consumers we should be careful what we wish for.

Particularly with sports fragmentation may see us all paying more for less. We will end up having to pay several different providers for the content we used to get through Sky.

My views (except when I am looking out their windows) are not those of my employer.

jonathan18

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#1410886 22-Oct-2015 09:55

Jaxson: (snip)
From mammary Prime was Sky's ticket (snip)

Well done, Jaxson - autocorrect error of the day award goes to you!

hairy1

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#1410888 22-Oct-2015 09:56

jonathan18:
Jaxson: (snip)
From mammary Prime was Sky's ticket (snip)

Well done, Jaxson - autocorrect error of the day award goes to you!

Perhaps less auto correct than Freudian slip? ;-)

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muppet

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#1410895 22-Oct-2015 10:00

Sky are a slug that I will be very happy to see the salt poured on.

Jaxson

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#1410924 22-Oct-2015 10:24

hairy1: Actually maybe not. Perhaps as consumers we should be careful what we wish for.

Particularly with sports fragmentation may see us all paying more for less. We will end up having to pay several different providers for the content we used to get through Sky.

This is a very real possibility, and costly for all, given the background requirements of apps for devices and TV's etc as well.

The likes of Fanpass works very well for me. I have reasonably good internet via VDSL and a data cap that allows for the use of fanpass etc.

One day providers may consider removing the geo locking deals and farm it to all worldwide, especially as we move away from broadcast TV.
Sky are stuck needing to pay more to develop new distribution models and architecture.
The bit that makes it more interesting to me is there is at least some competition where we're headed, after years of the monopoly sky had.

dclegg

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#1410961 22-Oct-2015 10:51

surfisup1000: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11532802

Sky say only be a small number of subscribers will ditch them after the world cup. I think it will be more significant than that as many people who wanted to disconnect in the last year have held out until after the cup finishes.

My Dad is in his 70s, and absolutely loves his rugby. But he intends to ditch Sky at the end of the RWC.If someone like him is willing to jump, I imagine it will be an increasing trend. He's not overly technical, but there are so many great streaming options now (and relatively easy to access too), that he no longer feels that Sky is giving him value for money.

He will miss having rugby games on tap, but he lives in a retirement village which shows Sky in one of the the common recreation areas. So he's quite happy to go there for big games instead.

Jaxson

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#1410968 22-Oct-2015 10:57

dclegg: If someone like him is willing to jump, I imagine it will be an increasing trend.

That was my point earlier also. I've had discussions with several long term sky subscribers who are reviewing the amount of money they give sky vs what they actually get out of it.
Likewise I didn't think some of these would ever ditch sky after so long with it.

On the flip side I know a few who got sky simply for the RWC, but ironically the games are on Prime anyway by the looks of it, and I know they didn't get the HD ticket either...

joshhill96

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#1410971 22-Oct-2015 10:59

Jaxson:
dclegg: If someone like him is willing to jump, I imagine it will be an increasing trend.

That was my point earlier also. I've had discussions with several long term sky subscribers who are reviewing the amount of money they give sky vs what they actually get out of it.
Likewise I didn't think some of these would ever ditch sky after so long with it.

On the flip side I know a few who got sky simply for the RWC, but ironically the games are on Prime anyway by the looks of it, and I know they didn't get the HD ticket either...

I wonder if people are jumping the bandwagon now since Prime has the All Blacks Coverage from now on, Live.?

richms

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#1410974 22-Oct-2015 11:05

mattwnz: It is also somewhat ironic and backward, that 4 years ago, NZers enjoyed HD coverage of the RWC, via free to air channels. Now most watchers are watching the RWC in SD on prime. I mean we have had HD on freeview for at least 8 years now, but prime is still in SD. I think many people think the quality of picture on prime is what it is on sky. I mean they use prime to advertise to advertise sky channels, so you would think that they would want to show the best quality sharpest picture possible in that advertising.

They also advertise neon in hd on youtube which is the other way around a d IMO false advertising.

Richard rich.ms

MikeB4

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#1410977 22-Oct-2015 11:13

The Share price is not a good indicator of corporate health, generally speaking the financial markets, NZSX included are driven by rumor and rumor that there maybe a rumor. One needs to do an analysis of the revenue accounts and balance sheets. Sky still has a strong customer base and is still the market leader in NZ and will continue to be so for the foreseeable future. They like many Info Tech companies are going through technology updates and redesign and this is always bring bottom line hits, just look at Vodafone and Spark as examples.

The more important indicator as to Sky's health is how they respond to market forces and what innovation they bring to it. They certainly have the resources and relationships to do so, it is however dependent on the will and foresight of the board and management to do so.

richms

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#1410989 22-Oct-2015 11:22

They have had years to innovate and done SFA while the world innovated around their obstruction. Leopards and their spots comes to mind.

Richard rich.ms

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