Big drop in Sky subscribers

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#1568092 8-Jun-2016 17:11

Jaxson:

ockel:

Their pricing is kept in check by other players that buy sports rights and offer them in the market. There are examples of this over the last few years. So there has not been and is not a monopoly. There are no exclusions for other players to bid for and offer sports in the NZ market. Whether those players can make a profit remains to be seen. But similarly whether the general entertainment offerings can be profitable also remains to be seen - they are in the same boat, albeit with deeper pockets. There is nothing to stop Lightbox from acquiring and offering sport - oh, wait.... they did that! I think thats what you call alternative competition in that market sector.

This has only happened recently because broadband/fibre has opened an alternative comms path.

The reality remains though, that you've ended up with a giant in the arena, preventing other startups from being able to compete. That's good business on Sky's part, but it has meant that there have been literally no alternative options for customers to purchase their sporting provider from. As above, this is changing now that an alternative distribution method has been implemented, but still doesn't escape the situation of Sky NZ winning all the local rights in NZ, bar some minority sports that one or two providers have now successfully won.

It's changing now, which is good to see, but Sky had it very easy for a very long time. I'm not knocking them for being successful, but I do think they were allowed to roam free and unchallenged over the last 20 years or so.

Yeah, but Sky isn't winning the sports deals, its bidding for them. Soccer, golf, cricket, they have gone and come back. This is a very very small country, paying gazillions for a sports feed and recouping the money is a hard sell.

JimmyH

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#1568191 8-Jun-2016 20:10

jarledb:

You think a Vodafone run by the very "forward thinking" management of Sky would be a hoot? Don't think either combination would bode well for the customers...

I shudder to think what the merged Sky-Vodafone (AKA Skodaphone?) might do once Sky management get their hooks into it.

Reintroduce rotary phones?

Interrupt your phone call every 7 minutes to play a shouty promo for the services you already have over the line?

Have a package that lets you add on free phone calls to the UK and Australia for $26 a month, but only if you first subscribe to their "basic international" calling package for $30, which includes free calling (only) to Lesotho, Niue and Patagonia - irrespective of whether you ever call those places?

On a more serious note, I'm struggling to see any obvious major synergy between those businesses, other than the fact the Vodafone already redistributes some Sky channels.

Benoire

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#1568213 8-Jun-2016 20:20

JimmyH:

jarledb:

You think a Vodafone run by the very "forward thinking" management of Sky would be a hoot? Don't think either combination would bode well for the customers...

I shudder to think what the merged Sky-Vodafone (AKA Skodaphone?) might do once Sky management get their hooks into it.

Reintroduce rotary phones?

Interrupt your phone call every 7 minutes to play a shouty promo for the services you already have over the line?

Have a package that lets you add on free phone calls to the UK and Australia for $26 a month, but only if you first subscribe to their "basic international" calling package for $30, which includes free calling (only) to Lesotho, Niue and Patagonia - irrespective of whether you ever call those places?

On a more serious note, I'm struggling to see any obvious major synergy between those businesses, other than the fact the Vodafone already redistributes some Sky channels.

Basically, in my opinion, Sky need access to dedicated internet infrastructure to reduce their peering costs for SVOD. Without it, they're at the mercy of the ISPs to enable internet distribution; with vodafones network they effectively have a subsidised network for which they can launch SVOD when the Optus deals expire which might enable them to offer a lower price that perhaps if they didn't. all speculation of course, but given what Sky in the UK has done it makes perfect sense.

andrewNZ

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#1568215 8-Jun-2016 20:21

Skodaphone ???

I'd go with Skyvphone

tdgeek

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#1568218 8-Jun-2016 20:24

JimmyH:

jarledb:

You think a Vodafone run by the very "forward thinking" management of Sky would be a hoot? Don't think either combination would bode well for the customers...

I shudder to think what the merged Sky-Vodafone (AKA Skodaphone?) might do once Sky management get their hooks into it.

Reintroduce rotary phones?

Interrupt your phone call every 7 minutes to play a shouty promo for the services you already have over the line?

Have a package that lets you add on free phone calls to the UK and Australia for $26 a month, but only if you first subscribe to their "basic international" calling package for $30, which includes free calling (only) to Lesotho, Niue and Patagonia - irrespective of whether you ever call those places?

On a more serious note, I'm struggling to see any obvious major synergy between those businesses, other than the fact the Vodafone already redistributes some Sky channels.

I have no issues with Sky management. Had they been bleeding 50000 subscribers for a few years, then yes I would have an issue. They have two SVOD services that they can finish and refine as and when required, aka 2019.

I agree re synergy. The pool of revenue and the population has not changed, there isn't any new money on the horizon. VF wont fine 20% more BB customers, Sky wont find 20% more subscribers. They both could if they slashed prices but that nullifies it.

tdgeek

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#1568220 8-Jun-2016 20:27

Benoire:

JimmyH:

jarledb:

You think a Vodafone run by the very "forward thinking" management of Sky would be a hoot? Don't think either combination would bode well for the customers...

I shudder to think what the merged Sky-Vodafone (AKA Skodaphone?) might do once Sky management get their hooks into it.

Reintroduce rotary phones?

Interrupt your phone call every 7 minutes to play a shouty promo for the services you already have over the line?

Have a package that lets you add on free phone calls to the UK and Australia for $26 a month, but only if you first subscribe to their "basic international" calling package for $30, which includes free calling (only) to Lesotho, Niue and Patagonia - irrespective of whether you ever call those places?

On a more serious note, I'm struggling to see any obvious major synergy between those businesses, other than the fact the Vodafone already redistributes some Sky channels.

Basically, in my opinion, Sky need access to dedicated internet infrastructure to reduce their peering costs for SVOD. Without it, they're at the mercy of the ISPs to enable internet distribution; with vodafones network they effectively have a subsidised network for which they can launch SVOD when the Optus deals expire which might enable them to offer a lower price that perhaps if they didn't. all speculation of course, but given what Sky in the UK has done it makes perfect sense.

How big is Voda's network?

Didn't NF pay RSP's to host? Or CDN?

Benoire

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#1568259 8-Jun-2016 21:01

tdgeek:

How big is Voda's network?

Didn't NF pay RSP's to host? Or CDN?

Not sure how big voda is, but I do recall that NF gives a set of hardware boxes with their content on to the local CDNs and pays for access. Having its own network and peering will save them money, or should.

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dafman

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#1568402 9-Jun-2016 08:54

I'm picking my naked broadband will halve in speed and double in price (-;

Not surprised, though - Sky couldn't keep up the same old if they were to have any chance of long term survival.

I'm not holding my breath that they have the necessary chops to make a success of it, but let's see.

tdgeek

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#1568410 9-Jun-2016 09:06

dafman:

I'm picking my naked broadband will halve in speed and double in price (-;

Not surprised, though - Sky couldn't keep up the same old if they were to have any chance of long term survival.

I'm not holding my breath that they have the necessary chops to make a success of it, but let's see.

I dont have Sky now, no intention to re-get it, but I feel they will do just fine. They are caught with Optus till 2109

Id say the SVOD crowd are the ones who need to assess the future actually. Its interesting times

dejadeadnz

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#1568489 9-Jun-2016 09:53

If this merger goes ahead, expect 3+ hours wait time on the help desks, enormous billing errors, and even more useless customer service. The idea of VF's management gaining control of such a large, unwieldy beast doesn't bear thinking about.

Hammerer

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#1568504 9-Jun-2016 10:28

dafman:

I'm picking my naked broadband will halve in speed and double in price (-;

dejadeadnz: If this merger goes ahead, expect 3+ hours wait time on the help desks, enormous billing errors, and even more useless customer service. The idea of VF's management gaining control of such a large, unwieldy beast doesn't bear thinking about.

C'mon guys, you can do a lot better than this! Winking or not, this is the sort of negative slaver/drivel that gossips and slanderers love.

DickDastardly

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#1568597 9-Jun-2016 12:21

If a Sky & Vodafone merger happens, we may suddenly have to change the title of this thread "Big INCREASE in Sky subscribers"....bit ironic when you actually consider what's happening to the traditional Sky customer base at the moment...

I don't want no sugar in it - thank you very much

tdgeek

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#1568603 9-Jun-2016 12:30

DickDastardly:

If a Sky & Vodafone merger happens, we may suddenly have to change the title of this thread "Big INCREASE in Sky subscribers"....bit ironic when you actually consider what's happening to the traditional Sky customer base at the moment...

how will they increase?

ockel

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#1568605 9-Jun-2016 12:31

DickDastardly:

If a Sky & Vodafone merger happens, we may suddenly have to change the title of this thread "Big INCREASE in Sky subscribers"....bit ironic when you actually consider what's happening to the traditional Sky customer base at the moment...

Yeah, funny how Sky is forecasting an increase in subscribers for FY17 but a new thread hasnt sprung up.

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Benoire

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#1568610 9-Jun-2016 12:33

tdgeek:

DickDastardly:

If a Sky & Vodafone merger happens, we may suddenly have to change the title of this thread "Big INCREASE in Sky subscribers"....bit ironic when you actually consider what's happening to the traditional Sky customer base at the moment...

how will they increase?

As a multifaceted media company, the number of subs for Internet/Phone/TV will cause an increase, but is unlikely at this stage to cause an increase in the TV subs as they're not offering anything new; I presume DDs response was a bit tongue in cheek...

As an aside, this is now the perfect platform for Sky to launch their own internet based system running on the back of neon etc. when they're ready to.

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