Big drop in Sky subscribers

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surfisup1000

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#195824 6-May-2016 10:29

http://www.stuff.co.nz/business/industries/79689666/big-drop-in-sky-subscribers

It is funny, because after the world cup the sky bosses were saying the drop in subscriber numbers would be negligible.

While anecdotal evidence was that there could be a big drop off in sky subscribers there were no hard numbers to say one way or another.

Now that it is hitting their bottom line they have to 'fess up to the shareholders.

I cancelled a little while back and they let me keep the box for a few months for free to air. But, i've got a Tivo ready to slot in when I return the sky box.

I was very much annoyed by skys annual ...we are raising prices... letter.

I was one of the first mysky subscribers when it was released and paid $600 up front for no monthly rental. I got the free upgrade to the HDi box, but when the larger box was released I tried to upgrade to that but they wanted another $600....really peeved me off that one so I'm pleased this is happening on a personal level haha.

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#1547560 6-May-2016 11:53

Apparently the cost of the sports subscription does not cover the costs of production. That is subsidised by the basic package. That model means we are forced to pay for something we don't really want.

However, if the transmission cost over satellite is so much more expensive that providing it over the internet (like Neon, Lightbox, Netflix, etc) then why not move to that model for everything? Unwillingness to change? Greed? Neon @ $20 is already way more expensive than it's competitors.

Kirk

trig42

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#1547572 6-May-2016 12:17

I am one of the stats. I left 8 weeks ago, and haven't missed it (well, I have missed the ease of use and reliability of the MySky box).

They sent me a survey a couple of weeks ago basically asking what it would take for me to come back. I said, cheaper, unbundled channels, no extra charge for HD, no extra charge for multiroom (both the Multiroom and HD charges really p*ssed me off - I have no issue with paying for another decoder/installation for MR, but not $25 a month) and cheaper MySky rental (I mean, a 1TB PVR is $3-400, whats with the $15 a month??)

I'd go back if Freeview was free, and I could add channels as I wanted. I do not need the 40 odd channels in the basic package. If basic is subsidizing sport, put the sport prices up, or pay less for the sport (and give other platforms a chance to grab it).

DarthKermit

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#1547576 6-May-2016 12:21

The Sky business model in 2016 makes about as much sense as opening a video rental store or DVD/CD store, IMO.

wellygary

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#1547583 6-May-2016 12:30

trig42:

I'd go back if Freeview was free, and I could add channels as I wanted. I do not need the 40 odd channels in the basic package. If basic is subsidizing sport, put the sport prices up, or pay less for the sport (and give other platforms a chance to grab it).

Which is essentially what their igloo model is/was, but its been so crippled so as to not be a threat to Sky Basic that it will eventually be put out of its misery as more and more Sky subscribers cut the cord and move to VOD services

tdgeek

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#1547584 6-May-2016 12:31

Sky has traction, and its now starting to bite. The article didn't imply much will change, but I am sure they will revisit. Perhaps making the $59 deal widely known and extend stand down to 6 months, perhaps reduce some pricing, perhaps push towards a choice of Sky via satellite or via streaming at a reduced cost. Its just supply and demand at work. Consumers will benefit

tdgeek

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#1547587 6-May-2016 12:33

I cancelled 2 months ago as my new home doesnt have a dish and i feel it won't be installable in a way that I'm happy with. I found Curiositystream so that reduced the missing it factor. Lightbox, NF NZ and CS are all on one device now, Apple TV4, so thats another convenience

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amiga500

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#1547589 6-May-2016 12:35

I had Sky a few years ago but gave it up because of cost and my limited interest in sports. I mainly watched the news channels. For about a week recently I was happily watching the live feed of Sky news UK on Youtube but now it's been geo blocked. Anyway I don't want to buy a VPN just to watch news and no way will I use Hola or Hulu or whatever it's called. So we can thank Sky NZ and similar sunset services for this damn geo blocking. I can still get RT News, and BBC on freeintertv, and Aljazeera either on freeview or on Youtube, so Sky NZ is not vital to me at all.

shk292

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#1547603 6-May-2016 13:08

I ditched Sky about two years ago in favour of BBC iplayer, NF and Freeview via a Panasonic PVR.

I just got back from some travelling within NZ which involved watching Freeview channels via Sky in various accommodation. I couldn't believe how poor the picture quality was - bad enough on static images but degrading to 1cm squares instead of pixels during action sequences. I don't know how people can tolerate that, much less pay for it

Dratsab

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#1547606 6-May-2016 13:12

kharris:

Apparently the cost of the sports subscription does not cover the costs of production. That is subsidised by the basic package. That model means we are forced to pay for something we don't really want.

However, if the transmission cost over satellite is so much more expensive that providing it over the internet (like Neon, Lightbox, Netflix, etc) then why not move to that model for everything? Unwillingness to change? Greed? Neon @ $20 is already way more expensive than it's competitors.

They've got fanpass for those that want sport over the interwebs at an extremely exhorbitant cost - $56/mth. Aside from that moving to an internet model too fast would be disastrous at this point in time. Some people have small datacaps, some people, especially older ones, don't have broadband. They seem to be taking baby steps towards transitioning, but will undoubtedly provide a mixed model for a long time yet.

Neon is a joke. SD quality and way overpriced. I think it, along with fanpass, can be seen as a good indicator of how Sky will continue to price its offerings.

noroad

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#1547613 6-May-2016 13:27

Dratsab:

Neon is a joke. SD quality and way overpriced. I think it, along with fanpass, can be seen as a good indicator of how Sky will continue to price its offerings.

Neon is still SD ? Well, that just goes to show how far out of touch Sky is, It must have been well over 10 years ago I bought my first Plasma 720p TV, and even watching Youtube in a small screen in less than 720 is a disappointing experience noways. SD on a 65inch for $20/month... nope, not even close. This is the company that thinks charging extra for pixelated highly compressed "HD" is still reasonable. Of course the issue for them is, how do you wipe $15/mth off the amount you are charging half of your customer base without sending the shareholders into a tailspin, you know you have to do it at some point but the longer you leave it the longer you bank it, vs the more customers that leave.

kharris

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#1547615 6-May-2016 13:37

I agree with you about fanpass and neon, but I think that is the issue. Average delivery of minimal content at high prices. Fanpass delivery is average at best and Neon is terrible. They need a content delivery system that will provide consistent HD streams to multiple devices. Netflix do it and Lightbox are trying hard. This will take time. I think they need to begin the transition to a mixed model sooner rather than later. It would allow them to offer the same content at cheaper prices and position them for the move if the future.

Dratsab:

kharris:

Apparently the cost of the sports subscription does not cover the costs of production. That is subsidised by the basic package. That model means we are forced to pay for something we don't really want.

However, if the transmission cost over satellite is so much more expensive that providing it over the internet (like Neon, Lightbox, Netflix, etc) then why not move to that model for everything? Unwillingness to change? Greed? Neon @ $20 is already way more expensive than it's competitors.

They've got fanpass for those that want sport over the interwebs at an extremely exhorbitant cost - $56/mth. Aside from that moving to an internet model too fast would be disastrous at this point in time. Some people have small datacaps, some people, especially older ones, don't have broadband. They seem to be taking baby steps towards transitioning, but will undoubtedly provide a mixed model for a long time yet.

Neon is a joke. SD quality and way overpriced. I think it, along with fanpass, can be seen as a good indicator of how Sky will continue to price its offerings.

Kirk

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#1547616 6-May-2016 13:39

I hope sky doesn't go down, i like the super deal from the telemarketers. Maybe they should offer the same rate and go for volume.

kharris

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#1547622 6-May-2016 13:50

tdgeek:

I cancelled 2 months ago as my new home doesnt have a dish and i feel it won't be installable in a way that I'm happy with. I found Curiositystream so that reduced the missing it factor. Lightbox, NF NZ and CS are all on one device now, Apple TV4, so thats another convenience

Which app store is Curiositystream available on?

Kirk

littleheaven

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#1547627 6-May-2016 14:05

I jumped ship after the 2015 Cricket World Cup when I realised that I was basically paying $75 a month to have the Living Channel on in the background, and that all the content I was recording to the MySky box was off the free-to-air channels. I didn't watch the majority of the basic plan channels at all. When I subbed to Sport to watch the cricket, that took my monthly sub to over $100. That was the reward I got for being a loyal customer for almost ten years. No special $50 subscription deals for me! The only thing I miss is the live rewind on the MySky box (noisy kid) but I can get around that by recording everything and then watching it later. Now my viewing is a mixture of Freeview, Hulu, Netflix and BBC iPlayer, and I've just started trying some shows out on my free Lightbox sub now it has an AppleTV4 app. The only sport I watch is cricket so when the Black Caps have a series on I cough up the monthly Fanpass fee and I've found that adequate for my needs. I'm saving hundreds of dollars a year.

Geek girl. Freelance copywriter and editor at Unmistakable.co.nz.

tdgeek

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#1547628 6-May-2016 14:07

kharris:

I agree with you about fanpass and neon, but I think that is the issue. Average delivery of minimal content at high prices. Fanpass delivery is average at best and Neon is terrible. They need a content delivery system that will provide consistent HD streams to multiple devices. Netflix do it and Lightbox are trying hard. This will take time. I think they need to begin the transition to a mixed model sooner rather than later. It would allow them to offer the same content at cheaper prices and position them for the move if the future.

Sky hasnt needed to worry, as churn has been very light. They run a business. However its starting to impact them. They are a big company, they have armed themselves with SVOD and a sport SVOD. Neon and Fanpass may not be great but who cares. They have armed themselves with the core means to take the next step. Offer SVOD to complement the Skybox. Update Neon and Fanpass to HD. They are well placed. One day they will probably be 90% SVOD, between then and now it wil be a mix, and that mix is a cost saver. Although I dunno how it will go if they use satellite in low subscriber numbers, that plateau will be when they release SVOD to replace remaining Satellite maybe

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