Story image

Changes ahead as Sky TV announces new developments

27 May 15

Sky Network Television, the country’s dominant pay-TV company, says programming costs as a percentage of revenue will be at the top end of its historic range in 2016

The programming costs-to-revenue ratio is likely to be in the 35 percent range for the 2016 financial year, up on its historical range of 30 percent to 35 percent, the company in presentation slides for an investor day. Sky TV said it had recently increased its basic and sport tier pricing by $1.15 and $1.61 respectively, partly due to increasing content costs.

Sky chief executive John Fellet outlined three key developments for the pay-TV operator: the extended partnership with Vodafone announced earlier today to offer broadband through Sky; possibly providing its subscription video on demand service Neon to customers with both Sky Movie and SoHo subscriptions at no additional cost; and enhancing its Fan Pass online and on demand subscription for certain sporting events to include online access to its Sky Sports linear channels. The latter is an apparent response to competition from the likes of online TV company Coliseum which has the rights to English Premier League games and PGA golf.

Sky TV’s product pipeline also includes introducing an option for consumers to access Sky Sports channels through daily and weekly passes at $15 and $20 respectively.

The deal with Vodafone will see Sky customers get a $10 monthly discount off their Sky subscription if they sign up to one of Vodafone’s broadband plans, tightening its existing relationship where customers can be billed for their Sky subscription on their Vodafone bill.

Fellet said Sky was quickly realising there was two markets for paid content – its premium pay TV service and standalone OTT (over the top) services delivered via the internet.  In the medium term the pay TV operator is considering an option to converge Neon and Fan Pass into a single integrated OTT proposition.

He said Sky UK’s approach was “of interest to us” where its internet TV service Now TV has helped drive subscriber growth.  

Now TV was launched in July 2012, allowing consumers to watch some of Sky’s exclusive content on a simple monthly contract without the need for any equipment installation.  It started with movie content and later added sports and entertainment.

More recently it launched a dedicated set-top or “puck” box that plugs into a HDMI port on a television set and allows access to the on-demand service and a range of other video on demand apps.

Another new development Sky this week said it was working on is allowing subscribers to scroll back in time through its television planner so they can watch programmes they missed.  The reverse electronic programming guide feature is likely to be available next year.

Sky is also about to allow all MySky decoders to connect to the internet, giving access to content in either the traditional linear format or on an on-demand basis. 

Kiwis losing $24.7mil to scam calls every year
The losses are almost five times higher compared to the same period last year, from reported losses alone.
Tile's Mate & Pro Bluetooth trackers land in NZ
If your car keys (or your tablet) have disappeared into the void at the back of the couch or if you left them somewhere in your car, retracing your steps to find them could be a thing of the past.
Government still stuck in the past? Not on GovTech's watch
What exactly is GovTech and what’s been happening in our capital city?
"Is this for real?" The reality of fraud against New Zealanders
Is this for real? More often than not these days it can be hard to tell, and it’s okay to be a bit suspicious, especially when it comes to fraud.
Hands-on review: The iPhone Xs
The iPhone Xs is a win that brought numerous new and exciting features to the market.
How much does your Amazon Prime Video subscription really get you?
For our NZ$8.90 per month, the average cost per title is US$0.00126 - but we only really get a choice of 416 TV shows and 4321 movies. Choice is a little bit limited compared to other countries.
Three ways to improve mental health support in the workplace
“Instead of scrambling into action after a crisis, employers need to be more proactive in supporting employees."
Kordia launches Women in Tech scholarship at the University of Waikato
The scholarship is established to acknowledge and support up-and-coming female talent and future technology leaders.