Netflix and Spark agreement

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#1726950 27-Feb-2017 10:59

From what I understand it's a one off $179.88 credit to your Netflix account that will give you 12 months Standard or around 9 Months premium if you so desire. Then you are locked into a 24 month contract but can move houses as long as you keep fixed broadband services with Spark. That's how I understand it in a nutshell.

trig42

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#1727026 27-Feb-2017 12:06

Very tempting.

I currently pay for Netflix (grandfathered plan), and would like lightbox. I am with Bigpipe at $79/month. Moving across to Spark I would lose my static IP, but I would get LB and NF (LB indefinitely I suppose NF for 12/9 months - I want HD).

Not sure yet. If they threw in Spotify I'd jump. Bigpipe is getting squeezed by Spark's other brands (both Spark itself and Skinny Broadband). About time BP did something IMO :)

ockel

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#1727088 27-Feb-2017 13:09

sen8or:

Announcement coming soon -

lightbox NZ sells its rights to contents to Netflix for $x and Spark extends "free Netflix" on a continuing basis, not just 12 months........ (pure speculation, but it seems nonsensical to actively promote a competitors product)

It may be a case of "many a true word spoken in jest".

Lightbox offers 12 month free to Spark customers becomes free in perpetuity. Called a churn management tool by many but hasnt resulted in any change in the direction of market share loss. So it hasnt stopped people leaving Spark broadband or attracted enough new subscribers to offset the customers churning away. But the content is given away for free so it has no value to a customer (and the other 2/3's of customers who dont value it would probably prefer cheaper broadband as evidenced in this price-driven market).

Lightbox abandons sports. Although sport is supposed to a key driver and really important in this market Lightbox doesnt want to stump up the cash to participate.

Then Lightbox starts to hemorrhage its executive team.

Amazon, a key supplier of content, enters the market directly.

Now a deal to add content via another direct supplier. Competitor? Complementary? Sure, both. But would anyone really notice or complain if Lightbox stopped adding new content (other than its Life of Series or Run of Series agreements). Cant complain about not getting something that you're not paying for.

I've said it before and I'll say it again, Lightbox looks like its in run-off. It wouldnt be too much of a stretch to think there might be a hiring freeze. And possibly even a freeze on development. If product and platform updates go quiet then that'd be a clear indicator. No major announcement, just letting Lightbox and its brand slowly disappear into the night without anyone noticing.

Cost savings in a price sensitive market. Probably adds $20-30m to EBITDA on an annual basis. Thats gold for Spark. 2-3% could be the difference between growing EBITDA and not growing EBITDA.

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#1727106 27-Feb-2017 13:58

Ockel,

As well as saving on the content purchasing they can get rid of the overhead costs of 'Lightbox'.

If they do keep both they do need to be careful because if your a customer and don't use either then at some stage you will won't to get some sort of rebate.

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#1727201 27-Feb-2017 15:30

It's not that great value imo, but I guess for people who never ring their ISP and ask for a better deal it's better than nothing. Personally I've had no problems ringing each year and getting $10+/mo credits for agreeing on a new 12 month term.

So yeah... I'd keep ringing(once a year) and save about twice the value of this offer and buy Netflix individually.

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#1727209 27-Feb-2017 15:42

loceff13:

It's not that great value imo, but I guess for people who never ring their ISP and ask for a better deal it's better than nothing. Personally I've had no problems ringing each year and getting $10+/mo credits for agreeing on a new 12 month term.

So yeah... I'd keep ringing(once a year) and save about twice the value of this offer and buy Netflix individually.

That's not really how the whole process is meant to work....

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loceff13

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#1727239 27-Feb-2017 16:11

hio77:

That's not really how the whole process is meant to work....

Ofcourse, but it's a competitive market where I can walk and get 2/12 months free with another ISP and bundle landline and/or mobile with them too if I choose for a lower or similar price, then churn again to the next good offer.

Clearly that's not ideal for any of those companies in question, but theres nothing stopping you as a customer taking advantage of the best deal on the market at any given time.

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#1727240 27-Feb-2017 16:12

Might make the switch from Vodafone.

Nate001

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#1727298 27-Feb-2017 17:48

We're existing spark fibre customers, with netflix. But I'm hesitant about committing to 24 months as the exit fee is $399. We will most likely stay with spark for 24 months, but what if they come out with some special a few months later and take $10/month off? I'd be better off with that.

Could be good to convince others to switch from other companies.

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#1727299 27-Feb-2017 17:50

Nate001:

We're existing spark fibre customers, with netflix. But I'm hesitant about committing to 24 months as the exit fee is $399. We will most likely stay with spark for 24 months, but what if they come out with some special a few months later and take $10/month off? I'd be better off with that.

That's how special deals work, There always will possibly be a "better" one out there. its up to you if you feel whats out there is the best deal for you..

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#1727306 27-Feb-2017 18:05

There objection to the Vodafone Sky merger now comes clearer and shows considerable dishonesty

Here is a crazy notion, lets give peace a chance.

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#1727312 27-Feb-2017 18:10

dclegg:

And for all those Spark users who aren't using your Lightbox sub, I have three words for you... The West Wing. It's the perfect antidote for the daily madness emanating from the Trump administration. :-)

Or Outlander - awesome watch (if you read the books of course, well, in my case, read the books)

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#1727318 27-Feb-2017 18:26

MikeB4: There objection to the Vodafone Sky merger now comes clearer and shows considerable dishonesty

How so?

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#1727360 27-Feb-2017 20:46

MikeB4: There objection to the Vodafone Sky merger now comes clearer and shows considerable dishonesty

I dont agree Mike, although we often do.

As an article said today, the key issue was sports. Voda having all the key content. Now, that's not an issue. Sky has all the key content, they paid the big bucks for it, and fair enough, Anyone can get Sky. BUT. The issue was that Voda could make Sports with Voda far cheaper than sports with Sky. AND, they could make certain sports a VodaSky exclusive.

As was stated today in the media, and I just got home, no link, if sports wasn't in the mix it would have gone ahead. I am happy to admit that I work for Spark, but I put bias aside. I also have Sky. If Sky was to be available to everyone with no competitive disadvantage, then there is no issue with the merger, it becomes merely a cost sharing exercise, which is efficient. The OZ version of ComCom can and does allow rules. Ours doesnt. Its a yes or its a no. And what I assume Voda and Sky put forward did not remove the possibility of abuse of the sports content. My opinion, not Sparks.

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#1727362 27-Feb-2017 20:56

tdgeek:

MikeB4: There objection to the Vodafone Sky merger now comes clearer and shows considerable dishonesty

I dont agree Mike, although we often do.

As an article said today, the key issue was sports. Voda having all the key content. Now, that's not an issue. Sky has all the key content, they paid the big bucks for it, and fair enough, Anyone can get Sky. BUT. The issue was that Voda could make Sports with Voda far cheaper than sports with Sky. AND, they could make certain sports a VodaSky exclusive.

As was stated today in the media, and I just got home, no link, if sports wasn't in the mix it would have gone ahead. I am happy to admit that I work for Spark, but I put bias aside. I also have Sky. If Sky was to be available to everyone with no competitive disadvantage, then there is no issue with the merger, it becomes merely a cost sharing exercise, which is efficient. The OZ version of ComCom can and does allow rules. Ours doesnt. Its a yes or its a no. And what I assume Voda and Sky put forward did not remove the possibility of abuse of the sports content. My opinion, not Sparks.

Vodafone already do Sport deals, like free for 6 months etc, Sky also do their own deals via telemarketing, (Which can be pretty compelling) The question is I guess would those stop if Vodafone bought them. The CEO of Sky said that wouldn't change, Any ISP would be able to get the same deal as Vodafone, As Telecom used to sell Sky..

How hard would it be for Spark to get rights to rugby. I wish instead of everyone complaining someone else would step up and try for it

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