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  Reply # 1853572 28-Aug-2017 06:41
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dafman:

 

tdgeek:

 

ascroft:

 

 

 

Biggest measure of Sky future success is still for me average age of their customers... I would bet it keeps going up as they don't have a proposition in the market for the next generation let alone the one after that. 

 

They are the classic incumbent sweating their assets and keeping prices high for as long as possible. Presumably they have done the numbers to see if they could remake themselves in the future as a sport only offering over the internet. Key question is how much revenue would be lost versus uptake in customers vs cost reduction. For all we know they may be ready to do that, but why not make as much money as possible for as long as possible - esp. if you have a stranglehold on sports.

 

For right now, if I were them, I would have continued with their previous Fanpass offering - would be surprised if it would have been cannabilising too many people with the set top boxes and it gives them options for the future and keep in good with the Govt. I used it intermittently and it seemed to work pretty well. I think they gave up on that too soon. 

 

I suspect they lost direction with Murdoch sold out - not a fan of that lot but their input loss would have been a blow. 

 

Mark

 

 

 

 

If you read this and other Sky hate threads, you can get an idea of the real facts. Or let us know what you think they need to do, using real numbers, we can advise of the facts behind the fiction

 

They arent a monopoly, or overcharge.

 

 

You asked the question - "let us know what you think they need to do?"

 

Here's what I think. Sky should pull up sticks, liquidate and pay out shareholders while there is still some cash to do so. They are in death throws, put them out of misery I reckon.

 

Someone else will buy the rugby rights and offer far better value for punters than what we currently endure with Sky.

 

 

Unless they buy rugby and sports rights at far cheaper rates, I cant see the better value.


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  Reply # 1853573 28-Aug-2017 06:41
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I do think something that Sky need to address is the decoder and HD ticket.  This is not on; we should be able to pick up the decoder for much cheaper on a permanent ownership similar to the UK system and that HD should not be charged for now.  There is probably an issue with the Optus deal which has caused that $15 dollar increase due to HD transponders but I expect this to go when the deal expires.


 
 
 
 


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  Reply # 1853574 28-Aug-2017 06:48
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Apsattv:

 

The reason for the basic package is they way channels are traditionally paid for. The content providers such as Discovery negotiate set fees based on say $x.xx per subscriber, when you have 700000 subscribers forced to get it as part of basic package its cheaper for Sky to get it.

 

If you have a pick and choose arrangment where only 200000 subscribers want Discovery then Sky have to pay more for it.

 

my quick idea of lineup and pricing for the satellite service

 

$50 Sports pack -include all sky sport channels +rugby channel +sport popups (available on its own)

 

$20 Basic (includes movies, soho and others) available on its own or $10 with sports pack

 

$0 Freeview pack available on its own

 

$10 Ethnic pack addon

 

$10 extra decoders

 

no hd fee no record fee

 

 

 

 

 

 

Their ARPU is about $80. Your plan wold see that drop a great deal. They would need way way over the 800,000 to recover that, and as 50% market share has been the case for a very long time, I see that as there saturation point. No record fee? In that case subscribers need to buy MySky, or the base STB. They make $15, now less per subscriber, per month, it takes an age to recover the dish if they installed and the MySky. If FTA on its own was free, who pays for the STB?


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  Reply # 1853576 28-Aug-2017 07:11
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While its good that there are many ideas, Sky's profit is $13 per month per subscriber. That takes away almost all ability to drop prices and remove some smaller fees. If they tinkered with the Basic and Sport fee, re arranged the channel lineup, they still need the $80 per month ARPU. IMHO it all comes down to sports rights costs


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  Reply # 1853578 28-Aug-2017 07:17
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Freeview on its own =$10 decoder rental, they already offer this for $20 a month

 

Its not a huge market as they are competing with people  BUYING $70 Freeview receivers, thats why they always throw in a couple of freebee channels. To try hook people into getting an upgrade to the Basic pack

 

Freeview+Basic would be a bargain for $20

 

 

 

 

 

 

 

 


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  Reply # 1853579 28-Aug-2017 07:25
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Apsattv:

 

Freeview on its own =$10 decoder rental, they already offer this for $20 a month

 

Its not a huge market as they are competing with people  BUYING $70 Freeview receivers, thats why they always throw in a couple of freebee channels. To try hook people into getting an upgrade to the Basic pack

 

Freeview+Basic would be a bargain for $20

 

 

 

 

 

 

 

 

 

 

It would, I like that idea. Shift the reduced cost to sport.


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  Reply # 1853585 28-Aug-2017 07:44
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What value does Sky offer for people like me who don't care about sport?

Banana?
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  Reply # 1853612 28-Aug-2017 08:46
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On the Sports Rights issues.

 

What if the rights holders sold to multiple customers, for less per customer?

 

They could still get their total (say for arguments sake, the NZ Rugby rights are $50m per annum) - sell to Sky, Amazon and Lightbox for $16-17m each - they can all broadcast as they see fit. Cost to each broadcaster goes down, therefore they can charge less to their customers. Customer can pick which suits them best - who has the best package/add-ons/incentives? (eg. Lightbox may do a deal on Mobile calling if you have LightboxRugby, Amazon a deal on shipping or a cheap credit card...)


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  Reply # 1853615 28-Aug-2017 08:51
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quickymart: What value does Sky offer for people like me who don't care about sport?

 

They have all sorts of content the other services don't have so it comes down to a matter of whatever floats your boat. With that content, of course, you're tied into a linear schedule but if that's ok and you don't mind paying for truckloads of ads and you don't mind repeat programming there's probably quite a lot of value. As value is a personal issue, it'll be up to you to look at what Sky offer and how they offer it then compare that to what other providers offer in terms of their content and how they provide it.


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  Reply # 1853616 28-Aug-2017 08:52
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sonyxperiageek:
dafman:

 

tdgeek:

 

 

 

ascroft:

 

 

 

 

 

 

 

Biggest measure of Sky future success is still for me average age of their customers... I would bet it keeps going up as they don't have a proposition in the market for the next generation let alone the one after that. 

 

 

 

They are the classic incumbent sweating their assets and keeping prices high for as long as possible. Presumably they have done the numbers to see if they could remake themselves in the future as a sport only offering over the internet. Key question is how much revenue would be lost versus uptake in customers vs cost reduction. For all we know they may be ready to do that, but why not make as much money as possible for as long as possible - esp. if you have a stranglehold on sports.

 

 

 

For right now, if I were them, I would have continued with their previous Fanpass offering - would be surprised if it would have been cannabilising too many people with the set top boxes and it gives them options for the future and keep in good with the Govt. I used it intermittently and it seemed to work pretty well. I think they gave up on that too soon. 

 

 

 

I suspect they lost direction with Murdoch sold out - not a fan of that lot but their input loss would have been a blow. 

 

 

 

Mark

 

 

 

 

 

 

 

 

 

 

If you read this and other Sky hate threads, you can get an idea of the real facts. Or let us know what you think they need to do, using real numbers, we can advise of the facts behind the fiction

 

 

 

They arent a monopoly, or overcharge.

 

 

 

 

 

 

You asked the question - "let us know what you think they need to do?"

 

 

 

Here's what I think. Sky should pull up sticks, liquidate and pay out shareholders while there is still some cash to do so. They are in death throws, put them out of misery I reckon.

 

 

 

Someone else will buy the rugby rights and offer far better value for punters than what we currently endure with Sky.

 



And exactly how are you so sure that whoever buys the rugby rights after Sky will offer it cheaper than Sky themselves??

 

Because for all related forms of entertainment, the price and value for consumers has been improving - that is why FTA TV is struggling, video shops are no longer ... and the very reason we are having this debate about Sky now. Improved value propositions are taking out the old slow players.

 

And when the post-Sky world finally arrives - and it will, it's just a matter time, that's all - we'll all wonder what the fuss was about.


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  Reply # 1853619 28-Aug-2017 08:56
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trig42: On the Sports Rights issues.

 

What if the rights holders sold to multiple customers, for less per customer?

 

They could still get their total (say for arguments sake, the NZ Rugby rights are $50m per annum) - sell to Sky, Amazon and Lightbox for $16-17m each - they can all broadcast as they see fit. Cost to each broadcaster goes down, therefore they can charge less to their customers. Customer can pick which suits them best - who has the best package/add-ons/incentives? (eg. Lightbox may do a deal on Mobile calling if you have LightboxRugby, Amazon a deal on shipping or a cheap credit card...) 

 

Not sure they potential purchasers would go for that, they tend to like exclusivity to guarantee a certain level of patronage.


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  Reply # 1853620 28-Aug-2017 08:58
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It's quite clear some of the commenters on this thread haven't read what I posted about how much money sky actually makes a month per customer now. 

 

 

 

Kinda feels like this thread has run it's course. 

 

 


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  Reply # 1853623 28-Aug-2017 09:04
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quickymart: What value does Sky offer for people like me who don't care about sport?

 

With Basic at 47, very little. If you dont like sport, and movies are cheaper elsewhere, and Sky doesnt have a lot of TV series outside FTA, its probably not for you.

 

If you had a family and they all have some interest across the genres, there would be good value at Basic = $20 to $30


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  Reply # 1853626 28-Aug-2017 09:05
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quickymart: What value does Sky offer for people like me who don't care about sport?

 

How can someone else answer this for you? Check out the channel offering and the episodes available and make a decision, it's simple really. No-one forces you to subscribe to Sky.

 

 


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  Reply # 1853629 28-Aug-2017 09:09
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trig42:

 

On the Sports Rights issues.

 

What if the rights holders sold to multiple customers, for less per customer?

 

They could still get their total (say for arguments sake, the NZ Rugby rights are $50m per annum) - sell to Sky, Amazon and Lightbox for $16-17m each - they can all broadcast as they see fit. Cost to each broadcaster goes down, therefore they can charge less to their customers. Customer can pick which suits them best - who has the best package/add-ons/incentives? (eg. Lightbox may do a deal on Mobile calling if you have LightboxRugby, Amazon a deal on shipping or a cheap credit card...)

 

 

The problem is Rugby then has no value for each of those providers, it is not a drawcard. The rights owners would then struggle for anyone to buy it. . In short, it would be as if Rugby was FTA, given the one sport costs would be shared over a few providers, = cheap per subscriber


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