VF and Sky?

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Reply # 1568467 9-Jun-2016 09:33

sbiddle:

tdgeek:

Actually Voda bought Sky

Not if you're to believe the media reporting it the other way around.. meanwhile reporting that Vodafone will own 51% of the entity!

The big announcement starting soon should clarify everything.

yep, I just realised the 51%. why cant media report the news properly

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Reply # 1568468 9-Jun-2016 09:34

networkn:
sbiddle:

tdgeek:

No merger, VF didnt buy Sky, Sky buys VF.

Until we get some clarification I think it's confused media creating confusion.

I don't see how it can be a simple case of Sky buying Vodafone if Vodafone Group will own 51% of the merged entity. Vodafone is the winner here, not Sky.

Exactly. When a company has the majority shareholder, surely it's the "buyer"

My take on it is that it's kind of both. Sky NZ is buying Vodafone NZ from Vodafone UK. It is paying for at least part of that purchase in scrip (i.e. shares). So Voda UK --> owns 51% SkyNZ --> "owns" 100% of Voda NZ.

Though I think technically it's a merger so Sky NZ and Voda NZ become a single company.

DIsclaimer: haven't read the actual docs, this is just on the basis of the media reports.

As an aside, anyone care to take a guess on just how many billing/CRM systems Skodafone will have running in parallel? I'll be interested to see the quoted "cost savings through synergies" figure that ends up being bandied about. IME, this is always too high, but is a useful proxy for just how much duplication goes on between the two companies.

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Reply # 1568470 9-Jun-2016 09:38

Here's the quote from the conference call invite:

"The proposed transaction involves SKY acquiring 100% of the shares of Vodafone NZ from Vodafone Europe B.V. and new shares being issued to Vodafone Europe B.V. so that it owns 51% of the total shares on issue in SKY. SKY will remain listed on NZX and ASX."

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Reply # 1568471 9-Jun-2016 09:39

networkn:

MikeB4:

This will need a long look by Comm Comm and I am sure the likes of Spark will be seeking that. I don't believe the Comm Comm will have an issue with it and all in all a good move for both companies.

I don't see how it's creating anti-competitiveness. At the end of the day, it will be occurring so that Sky can GROW it's market share, and it won't do this by punishing non-VF customers to pay a (Significantly) higher price.

But how can Sky grow its market share. The ISP's arent a cause of the recent small decline in subscribers. Its the relative higher pricing that SVOD has created,. and that Sky cannot yet move to SVOD until they know whats going on with Optus. Skys challenges remain whether Voda bought them, Spark bought them or BikeBarn bought them.

I guess Sky could get a whole lot cheaper if your on Voda, and all that does is add extra subscribers, lose subscribers via a revolt for those on other ISP's, and reduce the ARPU

Or maybe its all about Voda increaising profit by more than Sky lose it if they are discounted to Voda users?

ockel

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Reply # 1568472 9-Jun-2016 09:41

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tdgeek:

No merger, VF didnt buy Sky, Sky buys VF.

"

Telecommunications Users Association of New Zealand chief executive Craig Young said the merger could have a big impact on the market.

"The worst possible outcome would be people having to be with Vodafone to get Sky. There's a lot of content on Sky that is quite important to New Zealanders, because there's quite a lot of sport sitting with Sky," Young said.

"We do have only one pay TV provider, so if we had the two come together and lock it all up, that would be considerable market power in both telecommunications and content."

Never happen, BUT I can see a huge price differential to get Sky thats not via Voda. That makes FanPass very very important, and brand hate a potential

Duh. Spark owns Lightbox. Do you have to be a Spark customer to get Lightbox? No. TUANZ just scaremongering - again.

tdgeek

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Reply # 1568481 9-Jun-2016 09:46

ockel:

tdgeek:

No merger, VF didnt buy Sky, Sky buys VF.

"

Telecommunications Users Association of New Zealand chief executive Craig Young said the merger could have a big impact on the market.

"The worst possible outcome would be people having to be with Vodafone to get Sky. There's a lot of content on Sky that is quite important to New Zealanders, because there's quite a lot of sport sitting with Sky," Young said.

"We do have only one pay TV provider, so if we had the two come together and lock it all up, that would be considerable market power in both telecommunications and content."

Never happen, BUT I can see a huge price differential to get Sky thats not via Voda. That makes FanPass very very important, and brand hate a potential

Duh. Spark owns Lightbox. Do you have to be a Spark customer to get Lightbox? No. TUANZ just scaremongering - again.

Agree, BUT, if a key purpose here is to grow Voda market share using Sky as the lever, surely that will have to create a signifiacnt advantage to Voda BB users?

Plus, Lightbox is a much smaller TV operation comnpared to Sky. LB is a very nice added value, but for Sky users its a big deal

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Reply # 1568485 9-Jun-2016 09:50

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tdgeek:

ockel:

tdgeek:

No merger, VF didnt buy Sky, Sky buys VF.

"

Telecommunications Users Association of New Zealand chief executive Craig Young said the merger could have a big impact on the market.

"The worst possible outcome would be people having to be with Vodafone to get Sky. There's a lot of content on Sky that is quite important to New Zealanders, because there's quite a lot of sport sitting with Sky," Young said.

"We do have only one pay TV provider, so if we had the two come together and lock it all up, that would be considerable market power in both telecommunications and content."

Never happen, BUT I can see a huge price differential to get Sky thats not via Voda. That makes FanPass very very important, and brand hate a potential

Duh. Spark owns Lightbox. Do you have to be a Spark customer to get Lightbox? No. TUANZ just scaremongering - again.

Agree, BUT, if a key purpose here is to grow Voda market share using Sky as the lever, surely that will have to create a signifiacnt advantage to Voda BB users?

Plus, Lightbox is a much smaller TV operation comnpared to Sky. LB is a very nice added value, but for Sky users its a big deal

Sky wants to expand its revenue streams, it would not be logical to restrict access.

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networkn

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Reply # 1568491 9-Jun-2016 09:54

tdgeek:

invisibleman18:

As a customer of both I'm eagerly waiting to see what this means for me.

Applies to those who have Sky with another BB as well. Its got to be solely a case of either A) Use Sky to leveage users to Voda BB and/or B) to use Skys money to get stufff done as Voda UK wont fund anymore

Well considering VF UK own VF NZ pretty much, I'd expect funds to go back to the UK, and NZ would have no control over what that money was spent on even if it stayed within VF NZ?

ockel

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Reply # 1568492 9-Jun-2016 09:55

tdgeek:

ockel:

tdgeek:

No merger, VF didnt buy Sky, Sky buys VF.

"

Telecommunications Users Association of New Zealand chief executive Craig Young said the merger could have a big impact on the market.

"The worst possible outcome would be people having to be with Vodafone to get Sky. There's a lot of content on Sky that is quite important to New Zealanders, because there's quite a lot of sport sitting with Sky," Young said.

"We do have only one pay TV provider, so if we had the two come together and lock it all up, that would be considerable market power in both telecommunications and content."

Never happen, BUT I can see a huge price differential to get Sky thats not via Voda. That makes FanPass very very important, and brand hate a potential

Duh. Spark owns Lightbox. Do you have to be a Spark customer to get Lightbox? No. TUANZ just scaremongering - again.

Agree, BUT, if a key purpose here is to grow Voda market share using Sky as the lever, surely that will have to create a signifiacnt advantage to Voda BB users?

Plus, Lightbox is a much smaller TV operation comnpared to Sky. LB is a very nice added value, but for Sky users its a big deal

Sky users with Vodafone already get discounts. ie its a nice value add. VOD will be able to promote more heavily and maybe increase the level of discount. Discontinue VodafoneTV, improve the CDN etc.

More likely to be sold on cost-out than market share changes. Big mergers based on cost-out inevitably fail to deliver the cost out.

tdgeek

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Reply # 1568494 9-Jun-2016 09:57

MikeB4:

tdgeek:

ockel:

tdgeek:

No merger, VF didnt buy Sky, Sky buys VF.

"

Telecommunications Users Association of New Zealand chief executive Craig Young said the merger could have a big impact on the market.

"The worst possible outcome would be people having to be with Vodafone to get Sky. There's a lot of content on Sky that is quite important to New Zealanders, because there's quite a lot of sport sitting with Sky," Young said.

"We do have only one pay TV provider, so if we had the two come together and lock it all up, that would be considerable market power in both telecommunications and content."

Never happen, BUT I can see a huge price differential to get Sky thats not via Voda. That makes FanPass very very important, and brand hate a potential

Duh. Spark owns Lightbox. Do you have to be a Spark customer to get Lightbox? No. TUANZ just scaremongering - again.

Agree, BUT, if a key purpose here is to grow Voda market share using Sky as the lever, surely that will have to create a signifiacnt advantage to Voda BB users?

Plus, Lightbox is a much smaller TV operation comnpared to Sky. LB is a very nice added value, but for Sky users its a big deal

Sky wants to expand its revenue streams, it would not be logical to restrict access.

True. IF the purchase by effectivly Voda UK was to grow Sky. But is it to use Sky to grow Voda?

MikeB4

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Reply # 1568497 9-Jun-2016 10:12

tdgeek:

True. IF the purchase by effectivly Voda UK was to grow Sky. But is it to use Sky to grow Voda?

It will firm the positions of both corporations. It provides increased and potential revenue streams and provides a stronger vehicle to deal with overseas competition and suppliers. These are positives for NZ and in

the long term for the consumers.

Mike
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Reply # 1568502 9-Jun-2016 10:19

tdgeek:

Agree, BUT, if a key purpose here is to grow Voda market share using Sky as the lever, surely that will have to create a signifiacnt advantage to Voda BB users?

It would have been better to write:

Agree, but IF a key purpose here is to grow Voda market share using Sky as the lever, surely that will have to create a signifiacnt advantage to Voda BB users?

The big problem with all of our speculation is not the BUT but the IF. IFs are incredibly powerful so any time we minimise the significance of an IF then we make the speculation seem more solid and reliable. If we string several IFs together then we can generate almost any possible and impossible outcome for the entire universe.

tdgeek

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Reply # 1568503 9-Jun-2016 10:23

MikeB4:

tdgeek:

True. IF the purchase by effectivly Voda UK was to grow Sky. But is it to use Sky to grow Voda?

It will firm the positions of both corporations. It provides increased and potential revenue streams and provides a stronger vehicle to deal with overseas competition and suppliers. These are positives for NZ and in

the long term for the consumers.

Time will tell. increased revenue can only come from other BB users going to Voda or Sky some how growing their currently slowly declining business. The latter cannot be really attended to in full force until they know whats going on with Optus or they decide now to go full SVOD only. The latter doesnt really need Voda

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Reply # 1568540 9-Jun-2016 10:43

I believe we will see a major shift in the way Sky delivers its services in the next 24 months. The same also applies to the Telco's and ISP's as they push to diversify their core businesses. There will also be a rationalisation of ISP's as a defense against falling profits.

Mike
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Reply # 1568541 9-Jun-2016 10:46

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Spark press release makes a point of pointing out the competitors are really "not New Zealand companies":

“More and more New Zealanders have been choosing Spark in the last few years, and their trust in us reinforces our commitment to New Zealand. Should this proposal clear the hurdles in its way, it would mean that Spark remains the only major industry player controlled from New Zealand, with 2 Degrees controlled out of the US, Vocus out of Australia and Sky TV/Vodafone NZ out of the UK.”

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