Sky getting into broadband

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langi27

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#271665 21-May-2020 11:04

Saw this today, $157m is a reasonable investment in broadband infrastructure and the supporting services that go with it.

You'd like to think their point of difference was a good value entertainment bundle.

https://www.stuff.co.nz/business/121580893/sky-tv-to-tap-investors-for-157m-and-enter-broadband-market

Sky finally heading in the right direction perhaps.

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#2488579 21-May-2020 11:12

Crowded market not something I would do

Rikkitic

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#2488582 21-May-2020 11:17

Maybe Sky is getting desperate. They seem to be doing a lot of advertising on Freeview lately.

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Beccara

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#2488583 21-May-2020 11:18

Talk about out of the frying pan and into the fire

Most problems are the result of previous solutions...

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networkn

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#2488584 21-May-2020 11:18

Rikkitic:

Maybe Sky is getting desperate. They seem to be doing a lot of advertising on Freeview lately.

LOL If advertising is a sign of desperation, Briscoes is in BIG trouble.

antonknee

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#2488587 21-May-2020 11:21

Explains the trading halt shares were in...

Boradband is a crowded market already and low margin to boot, would need some significant differentiation to make this worthwhile. They'll be hoping a significant number of people will bundle broadband and entertainment - but will customers respond to that? Market share in broadband seems fairly static overall, I don't think the power companies that are bundling broadband are having massive uptake of it.

Linux

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#2488627 21-May-2020 11:26

Think of how confusing the BB packages will be if anything like getting Sky!! OMG the headache

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ockel

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#2488628 21-May-2020 11:26

And dont forget Stuff did Fibre for 3 years to get 20,000 customers....... to exit by selling to Vocus.

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networkn

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#2488631 21-May-2020 11:28

Linux:

Think of how confusing the BB packages will be if anything like getting Sky!! OMG the headache

Not sure what you mean? Getting Sky couldn't be easier? I've done it lots of times. It's usually 1 15 minute call, and one 15-30 minute visit onsite. Even if it were double that, I don't consider that unreasonable.

Linux

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#2488639 21-May-2020 11:36

networkn:

Linux:

Think of how confusing the BB packages will be if anything like getting Sky!! OMG the headache

Not sure what you mean? Getting Sky couldn't be easier?

@networkn You have to have this package before you can get that package, You can't have this Sky channel unless you have this channel

Yes it's easy I agree but just annoying at times

shk292

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#2488643 21-May-2020 11:45

Presumably you’ll have to pay extra if you want to use the Internet in more than one room. And you won’t be able to end your contract without taking your router to an obscure shop in a suburb 15km away. And full speed will be included in the base package for some domains, but you’ll have to pay extra for full speed in others

kobiak

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#2488645 21-May-2020 11:45

I call it desperate move to deliver content via fiber in order to survive in the next 5-10 yrs.

Sky's view:

- people need internet. CHECKED
- people want content. CHECKED
- sky can deliver content via internet. maybe CHECKED, buy more online platforms in the next 6-12 months
- set-up ISP to provide internet and content. sounds like CHECKED.

Smart move, yes. Is it successful move(?), time will show.

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#2488646 21-May-2020 11:48

kobiak:

I call it desperate move to deliver content via fiber in order to survive in the next 5-10 yrs.

Sky's view:

- people need internet. CHECKED
- people want content. CHECKED
- sky can deliver content via internet. maybe CHECKED, buy more online platforms in the next 6-12 months
- set-up ISP to provide internet and content. sounds like CHECKED.

Smart move, yes. Is it successful move(?), time will show.

If it doesnt get the $157m from its retail shareholders then the company is essentially bust. So the next 5-10 years is a big ask.

The sweepstake question for FY21: who will make more money - Sky or TVNZ. Hahahahahaha. BTW, my bet is on TVNZ.

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networkn

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#2488648 21-May-2020 11:52

ockel:

kobiak:

I call it desperate move to deliver content via fiber in order to survive in the next 5-10 yrs.

Sky's view:

- people need internet. CHECKED
- people want content. CHECKED
- sky can deliver content via internet. maybe CHECKED, buy more online platforms in the next 6-12 months
- set-up ISP to provide internet and content. sounds like CHECKED.

Smart move, yes. Is it successful move(?), time will show.

If it doesnt get the $157m from its retail shareholders then the company is essentially bust. So the next 5-10 years is a big ask.

The sweepstake question for FY21: who will make more money - Sky or TVNZ. Hahahahahaha. BTW, my bet is on TVNZ.

Where are you seeing that Sky is essentially bust without 157M? My understanding is that it's to pay for the new services they want to add?

ockel

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#2488652 21-May-2020 12:02

networkn:

Where are you seeing that Sky is essentially bust without 157M? My understanding is that it's to pay for the new services they want to add?

Its to pay down debt. Launch of new services is next year. Banks have demanded that it reduces its debt. Its issuing 1.3bn shares (thats 3x its existing shares) at 12c each. It has no institutional shareholders as they have zero confidence in management and its strategy. So its all retail. And if it doesnt get the cash from its retail shareholders what will the company do to repay its debt???

Its worth $50m pre funding. The current management have halved EBITDA in two years. It will have profit of $5-15m next year (a rounding error). And there is no clear sign that it can turn that around.

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networkn

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#2488655 21-May-2020 12:17

ockel:

networkn:

Where are you seeing that Sky is essentially bust without 157M? My understanding is that it's to pay for the new services they want to add?

Its to pay down debt. Launch of new services is next year. Banks have demanded that it reduces its debt. Its issuing 1.3bn shares (thats 3x its existing shares) at 12c each. It has no institutional shareholders as they have zero confidence in management and its strategy. So its all retail. And if it doesnt get the cash from its retail shareholders what will the company do to repay its debt???

Its worth $50m pre funding. The current management have halved EBITDA in two years. It will have profit of $5-15m next year (a rounding error). And there is no clear sign that it can turn that around.

Hi.

That's interesting considering they made some decent sized acquisitions in the past 2 years with RugbyPass Et Al.

Where did you get that information from?

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