Sky Television writes off $670m of 'goodwill', suspends dividend

Forums › Sky, Neon, Lightbox › Sky Television writes off $670m of 'goodwill', suspends dividend

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#2304204 22-Aug-2019 20:41

networkn:

Have you checked out the library of those services NZ vs US provided? It's why I use the US libraries.

Netflix NZ has a number of shows not available on US Netflix. E.g. Stargate is available in NZ but in the US as apparently another streaming service has the rights to these shows in the US. It seems certain rights holders licence a whole lot of smaller countries (including NZ) to Netflix while cherry picking the US rights to Netflix competitors if they can make more money doing so. This puts NZ in the interesting situation where we could actually be better off not having Netflix's competitors come here...!

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#2304257 22-Aug-2019 21:18

I am not sure that with the issues experienced with Spark Sport, that investors will really have the appetite to continue, esp since Sky have made no bones of the fact that getting the sports rights they have lost is the hill they want to die trying on (Ie they will spend whatever it takes). If the RWC coverage isn't a runaway success, I am not sure people will forgive them or trust Spark to deliver on important sport going forward, and on current experience, I can't see them delivering on what they promised. It's a shame in many ways.

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#2304279 22-Aug-2019 22:51

I dont think it's just about streaming, the STB still plays a big role for most people and the quality is much better that way. If sky can continue to create quality sports content and enhance the customer experience through programming, pricing and multiple device viewing options I think as a business model it has more longevity than Spark Sport. The next couple of years will be interesting.

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#2304282 22-Aug-2019 23:02

Disney did not appear in the the list of partnerships that sky are proud off, so I’m guessing the multi year rights deal signed back in 2015 is coming to an end and Disney+ will launch with a reasonably full catalogue...

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#2304313 23-Aug-2019 07:22

ockel:

How much of the results presentation and annual report have you read? You're assuming that streaming subs are all SSN (and not Neon Tv or Neon TV/Movie subs). And that they stay on for a full 12 months (rather than subscribing on a casual basis). Take a look at earnt streaming revenues for Fy19 and the average streaming subscriber base for FY19 and do the math. Its fact, not conjecture.

Sky made money from its legacy satellite business - some 79% of revenues come from satellite. Revenues went down. Costs went where? And profit went where? What happens when more go from sat to streaming? Less revenue, no change in costs. Do the math.

SSN didnt exist last year, and Fanpass was a crippled mess and overpriced. I don't see Neon as relevant. So I don't see that figure as relevant going forward. It slike comparing a rotten apple with a nice fresh orange

If the math is that obvious to you, why is Bennett going down this track?

Ive already given a response to revenue, as regards "Less revenue, no change in costs. Do the math." I will repeat. I have Sky, I think I pay $95 a month, I might well and probably will, drop that for SSN, costing Sky revenue of $55 per month. Two others who don't have Sky as they dropped in in the past now sign up for SSN. Its cheap, its has ALL channels and the video quality has improved. That adds $80 revenue. Sky are up $25 just like that. We know that Sky is sticky, so the 200,000 that have bailed leave a lot of what will be sticky customers. You would expect less of a ditch Sky get SSN from this lot, as compared to the last few years. You would expect a LOT of interest in SSN from those 200,000

Costs matter. But, Sky is not a business that adds a margin to their costs, and in accounting speak there are fixed and variable costs. Id expect variable costs, which is the key, to be low. With my example above there is no need to calculate the costs saved when I switch, or the costs added when two other assign back up

The math is about revenue. Costs are already there, the revenue is what is needed

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#2304315 23-Aug-2019 07:29

MileHighKiwi: I dont think it's just about streaming, the STB still plays a big role for most people and the quality is much better that way. If sky can continue to create quality sports content and enhance the customer experience through programming, pricing and multiple device viewing options I think as a business model it has more longevity than Spark Sport. The next couple of years will be interesting.

Sky's issue has been the price. SSN resolves that for many of those that have churned, or will churn. What you say is right but they already are successful with the points you made, except price.

Interesting to note is that Martin Bennett sees the possibility of Sky and Spark getting what each wants.

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#2304318 23-Aug-2019 07:35

JarrodM: Disney did not appear in the the list of partnerships that sky are proud off, so I’m guessing the multi year rights deal signed back in 2015 is coming to an end and Disney+ will launch with a reasonably full catalogue...

When streaming came along there was a battle between linear and this new cool online method. Sky has been affected, as had Mediaworks and TVNZ.

Now we have many streaming providers, but its now too fragmented so again its costly

Problem No.2 is that along with many SVOD providers, and that fragmentation, the content owners are now joining in, so Disney will take its stuff off the SVOD guys and sell it direct. More fragmentation, and each SVOD is now diluted and less value

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#2307104 28-Aug-2019 01:05

https://www.stuff.co.nz/business/115273620/sky-rolls-out-its-vision-for-telly-after-record-low-share-prices

"The IVP project, which Stewart stopped earlier this year, was written off to the tune of $38 million. There would be no new My Sky boxes – the old ones were good enough."

So they've gotten rid of the one piece of technology that would have dragged Sky kicking and screaming into the 21st century. I can understand getting rid of the puck device given that there are plenty of devices that could the job - Amazon Fire, Apple TV, Android TV, Tizen (Samsung) but when your SkyGo website is still running Flash I really have to ask how serious the management team actually is at telling the shareholders to 'suck it up' and make the investments needed to rescue the organisation from being irrelevant by being even further behind when it comes to technology.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

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#2307126 28-Aug-2019 09:00

It's funny when people criticize Sky for not having relevant technology. The STB currently is a fine bit of kit. It meets most peoples requirements and I prefer the in program navigation over the SVOD platforms I have used by FAR. It's a bit slow, but actually navigating Netflix programming isn't that much faster I noticed last night. I am dreading this RWC from a fast viewing perspective (I watched every single match of the last 2 RWC's) because the FFWD on Sky is far superior for moving through parts of a game which aren't actually involving the ball moving. +15seconds isn't the same as a linear FFWD action.

They have cancelled the new hardware because as far as I can tell, and I have no secret knowledge of this, but seems relatively obvious, that they are moving to App and Web viewing, which given your statement that everyone is has moved to this (as a measure of technology forwardness), seems strange to criticize.

I believe the current improvements to SSN will soon become available to more channels, and I suspect part of the reason behind the purchase of RugbyPass.com was to pickup a bigger potentially better, online platform for delivery of content.

People have (incorrectly) been calling Sky's demise for as long as I can recall, and yes they are shrinking, which is pretty natural, when customers have more choices and those choices (offering different things) are cheaper, and or more suited to their requirements.

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#2307138 28-Aug-2019 09:25

@networkn What is SSN? (Serious question)

Sometimes I just sit and think. Other times I just sit.

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#2307140 28-Aug-2019 09:27

Sky Sport Now.

tdgeek

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#2307141 28-Aug-2019 09:29

The new streaming Sky sport service. If you are aware of Fanpass, its the new and improved Fanpass, all sport channells

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#2307342 28-Aug-2019 15:01

networkn:

It's funny when people criticize Sky for not having relevant technology. The STB currently is a fine bit of kit. It meets most peoples requirements and I prefer the in program navigation over the SVOD platforms I have used by FAR. It's a bit slow, but actually navigating Netflix programming isn't that much faster I noticed last night. I am dreading this RWC from a fast viewing perspective (I watched every single match of the last 2 RWC's) because the FFWD on Sky is far superior for moving through parts of a game which aren't actually involving the ball moving. +15seconds isn't the same as a linear FFWD action.

They have cancelled the new hardware because as far as I can tell, and I have no secret knowledge of this, but seems relatively obvious, that they are moving to App and Web viewing, which given your statement that everyone is has moved to this (as a measure of technology forwardness), seems strange to criticize.

I believe the current improvements to SSN will soon become available to more channels, and I suspect part of the reason behind the purchase of RugbyPass.com was to pickup a bigger potentially better, online platform for delivery of content.

People have (incorrectly) been calling Sky's demise for as long as I can recall, and yes they are shrinking, which is pretty natural, when customers have more choices and those choices (offering different things) are cheaper, and or more suited to their requirements.

The issue I have isn't the cancelling of new hardware but the fact that they've cancelled the whole IPTV platform completely:

"The IVP project, which Stewart stopped earlier this year, was written off to the tune of $38 million. There would be no new My Sky boxes – the old ones were good enough."

The way in which that has been phrased is that they've not only cancelled the hardware but they've cancelled the whole IPTV project itself.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

ockel

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#2307368 28-Aug-2019 15:20

matisyahu:

networkn:

It's funny when people criticize Sky for not having relevant technology. The STB currently is a fine bit of kit. It meets most peoples requirements and I prefer the in program navigation over the SVOD platforms I have used by FAR. It's a bit slow, but actually navigating Netflix programming isn't that much faster I noticed last night. I am dreading this RWC from a fast viewing perspective (I watched every single match of the last 2 RWC's) because the FFWD on Sky is far superior for moving through parts of a game which aren't actually involving the ball moving. +15seconds isn't the same as a linear FFWD action.

They have cancelled the new hardware because as far as I can tell, and I have no secret knowledge of this, but seems relatively obvious, that they are moving to App and Web viewing, which given your statement that everyone is has moved to this (as a measure of technology forwardness), seems strange to criticize.

I believe the current improvements to SSN will soon become available to more channels, and I suspect part of the reason behind the purchase of RugbyPass.com was to pickup a bigger potentially better, online platform for delivery of content.

People have (incorrectly) been calling Sky's demise for as long as I can recall, and yes they are shrinking, which is pretty natural, when customers have more choices and those choices (offering different things) are cheaper, and or more suited to their requirements.

The issue I have isn't the cancelling of new hardware but the fact that they've cancelled the whole IPTV platform completely:

"The IVP project, which Stewart stopped earlier this year, was written off to the tune of $38 million. There would be no new My Sky boxes – the old ones were good enough."

The way in which that has been phrased is that they've not only cancelled the hardware but they've cancelled the whole IPTV project itself.

So how do you think SkyGo, Neon, SkySportNow and SkyOndemand are delivered? Technically how would you describe them?

Sixth Labour Government - "Vision without Execution is just Hallucination"

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#2307419 28-Aug-2019 17:30

ockel:
matisyahu:
networkn:

It's funny when people criticize Sky for not having relevant technology. The STB currently is a fine bit of kit. It meets most peoples requirements and I prefer the in program navigation over the SVOD platforms I have used by FAR. It's a bit slow, but actually navigating Netflix programming isn't that much faster I noticed last night. I am dreading this RWC from a fast viewing perspective (I watched every single match of the last 2 RWC's) because the FFWD on Sky is far superior for moving through parts of a game which aren't actually involving the ball moving. +15seconds isn't the same as a linear FFWD action.

They have cancelled the new hardware because as far as I can tell, and I have no secret knowledge of this, but seems relatively obvious, that they are moving to App and Web viewing, which given your statement that everyone is has moved to this (as a measure of technology forwardness), seems strange to criticize.

I believe the current improvements to SSN will soon become available to more channels, and I suspect part of the reason behind the purchase of RugbyPass.com was to pickup a bigger potentially better, online platform for delivery of content.

People have (incorrectly) been calling Sky's demise for as long as I can recall, and yes they are shrinking, which is pretty natural, when customers have more choices and those choices (offering different things) are cheaper, and or more suited to their requirements.

The issue I have isn't the cancelling of new hardware but the fact that they've cancelled the whole IPTV platform completely:

"The IVP project, which Stewart stopped earlier this year, was written off to the tune of $38 million. There would be no new My Sky boxes – the old ones were good enough."

The way in which that has been phrased is that they've not only cancelled the hardware but they've cancelled the whole IPTV project itself.

So how do you think SkyGo, Neon, SkySportNow and SkyOndemand are delivered? Technically how would you describe them?

I don't know - I can only go by what they put in their press release. If they aren't cancelling the entire IVP project but only the hardware portion (puck device, new set top box etc) then they need to specify that in their press release.

"When the people are being beaten with a stick, they are not much happier if it is called 'the People's Stick'"

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