Yes... paid quality beats 'free' junk, but as the subscribers are already paying their premiums all I would expect from Sky would be to use the VOD to unlock the timeframe... perhaps for a nominal $10 you get to watch anything they screened at a time suited to YOU, the key 'feature' of VODs in the first place?
then have 'package' deals for the VOD 'subscribers' at bulk purchase rates, and slightly inflated 'singles' for the ones who only want to taste, but aren't prepared (or able?) to subscribe monthly...
like someone above just said, if they have locked up the content already, they just need to find ways to monetize it effectively and efficiently to grab the broader PPV client base (who mostly now have options for unlimited broadband too)
seems a careful market survey would sort out their pricing potential and Win/Win results?
bearing in mind that the content providers would also dictate the terms as to how they could distribute their content and the cost of said distribution.
Effectively, sky are now (or will be) competing with Quickflix, Sparktv and vodafone TV (do they actually offer anything different?) in terms of legitimate NZ content providers plus of course Netflix, Hulu etc (I think stuff indicated the NZ Netflix subscription at +/- 30k NZ users?).
Unfortunately for NZers, that will likely mean a very fragmented market with lots of crossover content, but, exclusive content deals too. I think this will lead to a fair amount of consumer dissatisfaction and will impede the uptake
Sky's offering could potentially be very good at launch. But, like Quickflix, I see it being disappointing with a lack of content and a lack of ways of accessing that content.
They *may* prove me wrong, and release a large catalogue at a reasonable price on many devices (it must have Android, Windows and iOS (with AirPlay) apps, an AppleTV App would be awesome too, but it seems even after a couple of years without a Quickflix one, this may be a bridge too far). I'm not holding my nreath though.
sen8or: Unfortunately for NZers, that will likely mean a very fragmented market with lots of crossover content, but, exclusive content deals too. I think this will lead to a fair amount of consumer dissatisfaction and will impede the uptake
This is my biggest fear. The market in NZ is small and we may find a fragmented approach to content will cause us to pay more in the long run. Imagine if each sport was priced like the Premier League, what about TV shows or groups of shows for a similar price... I'm not suggesting I know the prices if it did happen but that the consequences could be that the bundled price we're use to seeing is actually cheaper due to the cross subsidy!
sen8or: bearing in mind that the content providers would also dictate the terms as to how they could distribute their content and the cost of said distribution.
Effectively, sky are now (or will be) competing with Quickflix, Sparktv and vodafone TV (do they actually offer anything different?) in terms of legitimate NZ content providers plus of course Netflix, Hulu etc (I think stuff indicated the NZ Netflix subscription at +/- 30k NZ users?).
Unfortunately for NZers, that will likely mean a very fragmented market with lots of crossover content, but, exclusive content deals too. I think this will lead to a fair amount of consumer dissatisfaction and will impede the uptake
Or you have a monopoly provider who can charge as they like due a lack of competition which is what we have now in the pay TV arena.
I do wonder how four VOD providers will survive in a market of 4 million people though.
Had a quick look at quickflix Aussies financials, they "Only" burned about. 1.3m cash in first quarter of 2014, this is on top of annual losses into the multiple millions of dollars year on year. They state they have actual customer numbers at around 120k paying members.
Given the size of the Aussie market (5-10 times the size if nz) and after 7-8 years trading, they still have note made a single $ profit, were on the verge of collapse in 2012/13 if not for another cash injection from an investor and they only have 120k customers, Australian wide, it really begs the question, can even 1 VOD supplier survive in our market?
NB all figures are publicly available as quickflix Aussie is a listed company.
Not sure if I've ever mentioned it her but I've said to friends / family etc that I would pay good money to be able to watch or listen to whatever I want whenever I want. I don't want to choose a particular platform or provider just for their stuff. Consumers want choice and I would pay good money for it.
Personally, I'm withholding judgement until they actually launch. Only once it's clearer what their terms, pricing, content range and hardware requirements actually are will I be able to make a call on whether it's worth it. If it isn't, I will probably go the Netflix route, once I have updated my equipment sufficiently to do so (Christmas project).
What, someone on an Internet forum waiting for actual facts to be released by a company before making their decision rather than just speculating? Surely society hasn't developed that much already
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