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  Reply # 1466462 9-Jan-2016 11:19
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OP here

I only watch rugby union , super rugby and international rugby union.

I think 30 a month is fair as that is what sky charge for sport on sat.

-Steve.




Voice gives context

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  Reply # 1466485 9-Jan-2016 12:51
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ockel:
Sam91: I don't think $56 is far off. In my opinion $45 is fair for Sport only.


Okay, thats interesting.  Why $45/mth for Sport?  Why not $30/mth as per the OP?  Everyone has a different propensity to pay so everyone is different.  But how did you arrive at $45?  And why did the OP arrive at $30/mth?  

What is your habitual sport watching?  Is it a Super 15 match a week?  Or 2 or 3?  The tennis (topical right now), the F1, A-league, NBA, NBL, Netball, V8's?  What sport do you want to watch and are willing to pay for?  And how often do you or would you watch it?

Over the summer months my must have is NFL (sure I watch some cricket, some tennis etc but I wouldnt miss them if I didnt have sport).  I will watch 3 games a week or 9 hours a week.  For this I need Basic+Sport+HD+MySky at ~$110/mth or $25/week.  So my viewing habit is about $2.75/hour.  Its how I justify my purchase.  I dont take into account any other Sky I watch in this calculation.

I could get NFL Gamepass for the post season (11 games) for about NZD110 or $10/game.  So my streaming option for a 3hr game is ~$3.33/game ( a premium to the regular season but its playoffs so pricing is higher in the postseason).  So an individual sport will charge me more than I'm currently paying.  If you're a sport nut and want more sports then the a la carte can start getting expensive.  But we'll keep it simple.

So how do you get to your $45/mth?



Everyone would love sport for $30, but I don’t feel it’s realistic for Sky to offer Sport as a standalone product for the same price as the bundled product. If they offered sport for $30 they would lose money on subscribers like our household ($83 per month for predominantly sport). There has to be a heavy premium on the standalone service to avoid the mass switch from basic + sport to just sport. I know at $45 per month our household would swtich to sport only, but at $56 we will not. So Sky have priced it pretty well from their perspective, because we will continue paying $83 per month (basic, sport and HD) for predominantly sport. So, as much as I think $45 would be fair, I think it would be a bad business move.

I completely agree with how you’ve justified the cost. If you break it down like you have done, and forget about how sky breaks down the costs. $83 per month for sport only is actually pretty good value for money. That’s why we will continue to subscribe.

By the way, we don’t pay for mysky rental monthly, paid the one off cost several years ago.

 
 
 
 


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  Reply # 1466495 9-Jan-2016 13:03
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that $30 is just for the sports content, the basic fee includes decoder hire, and any/all infrastructure costs.

If it were to be a standalone item i would see it being more than $30 per month.

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  Reply # 1466500 9-Jan-2016 13:29
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Can't you just end your contract and sign up again under a family members name a few months later(iirc 3 months cooldown or something?) for the cheap new customer offers..

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  Reply # 1466503 9-Jan-2016 13:33
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A thought about Streaming. There is no infrastructure required from Sky. No dish, no LNB, no mysky box, no sky tech to visit. There is backend investment for the streaming and content licence fees but not much else. If they can get the volume of subscribers through the roof it would pay for itself.

This is the Netflix model after all. High volume, low margin.




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

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  Reply # 1466509 9-Jan-2016 14:14
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hairy1: A thought about Streaming. There is no infrastructure required from Sky. No dish, no LNB, no mysky box, no sky tech to visit. There is backend investment for the streaming and content licence fees but not much else. If they can get the volume of subscribers through the roof it would pay for itself.

This is the Netflix model after all. High volume, low margin.


Okay, say you're a startup streaming service.  Lets say its a 30 week competition with games around 90mins.  And your target subscriber is going to watch one, maybe two games a week.  How do you price it?  Is $5/match reasonable?  Thats $150/season.  Is $10/match reasonable?  

You've got to set it high enough to justify your content costs (say $4m/year) plus your CDN plus your marketing and overheads.  
But no so high that you cant build your subscriber base to allow you to rebid for the rights in 3 years time.
And you've got to balance it such that you take into account sports rights inflation of up to 33% pa (or higher as seen in Australia) - cant slot your subs with a massive price increase and scare them away (or have them choose to stream via a VPN).  

How would you price it?

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  Reply # 1466513 9-Jan-2016 14:20
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sdavisnz: OP here

I only watch rugby union , super rugby and international rugby union.

I think 30 a month is fair as that is what sky charge for sport on sat.

-Steve.


Last year how many games per week or month did you watch?  
Didnt FanPass offer a season pass at $300 for Super15?  For 21 weeks of competition including finals.  

Basic subscribers probably subsidise sports subscribers to a significant amount.  And recall that basic is made up of $18/mth for the decoder plus $31/mth for the basic channels.  So if Sky were to "break out" sports it'd be at least $46/mth, not $30/mth (or $28.29 as it is).

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  Reply # 1466516 9-Jan-2016 14:24
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hairy1: A thought about Streaming. There is no infrastructure required from Sky. No dish, no LNB, no mysky box, no sky tech to visit. There is backend investment for the streaming and content licence fees but not much else. If they can get the volume of subscribers through the roof it would pay for itself.

This is the Netflix model after all. High volume, low margin.


And as bolded, its a free add-on. Seems fair to me. In fact it costs them, as you mentioned, but still free. They put RWC on Prime also, thats free. They aren't the bad guys everyone makes them out to be. Just another business located in NZ, thats all.

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  Reply # 1466520 9-Jan-2016 14:29
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tdgeek:
hairy1: A thought about Streaming. There is no infrastructure required from Sky. No dish, no LNB, no mysky box, no sky tech to visit. There is backend investment for the streaming and content licence fees but not much else. If they can get the volume of subscribers through the roof it would pay for itself.

This is the Netflix model after all. High volume, low margin.


And as bolded, its a free add-on. Seems fair to me. In fact it costs them, as you mentioned, but still free. They put RWC on Prime also, thats free. They aren't the bad guys everyone makes them out to be. Just another business located in NZ, thats all.


A NZ owned business located in NZ - paying its share of tax (GST and income tax).  Lightbox too.
More than you can say for some that operate in the space.

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  Reply # 1466542 9-Jan-2016 14:52
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Fan Pass

Free Day Pass

Use Promo Code: TENNISDAY 

Credit: Choice Cheapies

Looks like it might be available today only. Good opportunity to test it out.

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  Reply # 1466548 9-Jan-2016 15:04
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I am more than happy to pay $0 for sport too. Sport is something you should do, not something you should watch.

We have Basic and Soho which is fine by me. Plenty of channels in Basic I would bin too, as we mostly watch only the more intelligent programming on Discovery, History, BBC Knowledge etc really.





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  Reply # 1466549 9-Jan-2016 15:06
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sdavisnz: OP here

I only watch rugby union , super rugby and international rugby union.

I think 30 a month is fair as that is what sky charge for sport on sat.

-Steve.


How about I help break it down for you:

21 weeks for Super 15, 12 games over 6 weeks for Rugby Championship (non-world cup years) plus maybe 3 weeks for a Northern Hemisphere team.
So roughly 30 weeks of rugby or about 7 months.  

Sky (Basic, Sport and HD cos it looks good right?) for $88/mth = $616 for your 36 matches assuming you're only interested in your Super 15 team.  About $17/game.  

Fanpass for $56/mth = $392 or $11/game.

You want it for $30/mth or $210 for the 36 games or $6/game.  Less than 1 beer down the pub.  

Did you perchance attend any rugby games?  How much did it cost for you to go?  By yourself or with a family/friends?  Did you eat anything there? Pay for parking?   How much was the total cost of your experience at the game?  How much is a reasonable premium to justify being there vs watching?  

These are all questions of utility that are fascinating to analyse.  And ones that we rarely ask ourselves.  
How much am I willing to pay on a Pay-per-view basis?



 

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  Reply # 1466552 9-Jan-2016 15:14
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Sam91: Fan Pass

Free Day Pass

Use Promo Code: TENNISDAY 

Credit: Choice Cheapies

Looks like it might be available today only. Good opportunity to test it out.


it can be used until 8pm tomorrow iirc(getting 24 hours from that point etc)

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  Reply # 1466556 9-Jan-2016 15:27
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Geektastic: I am more than happy to pay $0 for sport too. Sport is something you should do, not something you should watch.

We have Basic and Soho which is fine by me. Plenty of channels in Basic I would bin too, as we mostly watch only the more intelligent programming on Discovery, History, BBC Knowledge etc really.


You mean like those constant intelligent portrayals of semi-literate bearded savages living the paleo life in the Alaskan bush, the intelligent discourses on Ancient Aliens that just must be true because the people who say so are so convincing, the intelligent back-to-back boys will be boys antics of forever repeated Top Gear episodes? Yup, got to love all that intelligent programming.






I reject your reality and substitute my own. - Adam Savage
 


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  Reply # 1466565 9-Jan-2016 15:52
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Rikkitic:
Geektastic: I am more than happy to pay $0 for sport too. Sport is something you should do, not something you should watch.

We have Basic and Soho which is fine by me. Plenty of channels in Basic I would bin too, as we mostly watch only the more intelligent programming on Discovery, History, BBC Knowledge etc really.


You mean like those constant intelligent portrayals of semi-literate bearded savages living the paleo life in the Alaskan bush, the intelligent discourses on Ancient Aliens that just must be true because the people who say so are so convincing, the intelligent back-to-back boys will be boys antics of forever repeated Top Gear episodes? Yup, got to love all that intelligent programming.




Or the mindless renovations dramas or kitchen dramas or long-in-the-tooth hospital/beach dramas?  
Maybe we should have some high-brow current affairs that no one watches so we cancel them.  

There is no such thing as intelligent programming.  Plenty of people think zombies are unintelligent programming or that superheroes are unintelligent programming.  Each to their own.

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