SkyTV in its death throes (8 Aug, 2017)

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SkyTV in its death throes (8 Aug, 2017)

Postby aardvark_admin » Tue Aug 08, 2017 9:03 am

This column is archived at: http://aardvark.co.nz/daily/2017/0808.shtml

Sell, sell, sell.

Can readers see anything wrong with that advice, in respect to shares in Sky Television?

What are the odds that Amazon will just show a *huge* chunk of change at buying the rights for rugby in NZ and what effect would this have on SkyTV's subscriber-base and profits?

Have decades of living in a monopoly environment made SkyTV just too ill-equipped to go head-to-head with the competition that is now at its doorstep?

Can you really believe the responses that Sky's management have presented to the challenges that lie before them in the marketplace? (Sue, sue, sue, hike prices for loyal customers and offer huge discounts to new ones).

What's your prediction for SkyTV's share price in 12 months? It's presently $3.35, down from $5.00 less than a year ago. Will this decline abate or intensify?

Why on earth would anyone *not* sell their SkyTV shares right now?
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby par_annoyed » Tue Aug 08, 2017 9:21 am

It occurs to me that it's not just Sky that do the 'new customer' thing.
Power companies offer better terms to newbies than 'loyals' for 12 months at least, and I know a couple of people who move credit cards every 12 months to get another 'free charges' period on their debts....
So being loyal to a company obviously isn't the way things are going.

We left Sky years ago, after the adverts got more and more prevalent, and the movie channels (as was) started offering less and less new stuff. In our view it became not worth the money. I can only see a continued slide to oblivion for Sky. But I don't see how the current NZ network could handle everyone streaming their moves at the same time, so it may not be a simple death. How stupid is any business model which says "hey we're losing customers, time to put prices up" ? You are right. Only monopolies (Cough - Fonterra) can behave that way.
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby goosemoose » Tue Aug 08, 2017 9:36 am

par_annoyed wrote:It occurs to me that it's not just Sky that do the 'new customer' thing.

Absolutely! I change power companies on a regular basis, probably every couple of years or so. Last time I kept on wavering and the bonus went from $50 credit to $200. Magazine subscriptions are another good one. Free gifts for new people signing up. I let my subscription expire and then get another one. All companies are at it, loyalty is not worth sh*t these days. I'm more than happy to play them at that game. Thinking its about time I changed phone companies just because I've been with my current one for about 2-3 years and can probably get a better deal elsewhere by now.

I told Sky 15 years ago I sign up to them if I could get only the channels I wanted. Needless to say I've never signed up with them.
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby GSVNoFixedAbode » Tue Aug 08, 2017 10:52 am

Most consumers will take the path of least resistance - stay with a company they've already signed up with or once that presents too many resisters (price, quality of service, service itself...hey is that Ohms Law of Economics?) then move to an easier path. Make it easy and people will jump - which is exactly what the Set-top box sellers have done.
We've got Netflix (easy to use, needs more global content rather than regional filtering), NEON (are you effing kidding me? Very poor!), and Kodi. Kodi+addons make things so much easier: I've paid for the content on NEON, but watch via Kodi as it is far, far easier!

Although those add-ons have become a victim of their own success with the generic API key for Elysium now blocked and you need to register&generate your own to re-enable feeds. ..... apparently. ......if one was to be watching content using said add-on. :roll:
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby hagfish » Tue Aug 08, 2017 11:03 am

Amazon may look at NZ, and see that we are a bunch of rubes who are prepared to pay a fortune to watch mediocre content AND ads, and decide to 'partner' with Sky, rather than cut them off at the knees. Why charge $100/year when so many people are willing to pay $1200?
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby phill » Tue Aug 08, 2017 11:14 am

its going to be an interesting auction for nz rugby and cricket content
sky knows what it can and cannot afford to pay
amazon knows roughly what sky figures will be
so the auction starts with only one ending
sky has to win it or loose almost all its customers
amazon has to push the price so sky cannot make a profit after it has paid the auction price
amazon cannot loose so long as they keep bidding till it reaches the point sky cannot pay .. then its sky's time to decide which way they will die
loose the auction > their customers > the station
or win the auction > try to create a bigger revenue stream* > fail > go bankrupt > loose their customers > loose their station

* they have rung that bell till only the deaf are left
soooo thats not going to work
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby aardvark_admin » Tue Aug 08, 2017 11:57 am

GSVNoFixedAbode wrote:Although those add-ons have become a victim of their own success with the generic API key for Elysium now blocked and you need to register&generate your own to re-enable feeds. ..... apparently. ......if one was to be watching content using said add-on. :roll:

Yes, I've ditched the old (popular) plug-ins in favour of newer ones that are working just fine.
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby Weasel » Tue Aug 08, 2017 1:04 pm

Sky missed the boat a long time ago. They should have snagged the old Bell South before Vodafone got it, and Saturn/TelstraSaturn/TelstraClear before *Vodafone* got it for the cable and DSL customer base, and rolled it all together into a delicious hard to beat package, just like AT&T did in the US - they snapped up struggling DirecTV (pay satellite), and now bundle DSL/Satellite/mobile phone/VOD streaming is zero rated to their customers with phones on AT&T. Comcast just launched a virtual cellular network via Verizon's network with unlimited data for $45 a month in order to compete with AT&T in that segment. Now other TV operators are sniffing around at buying Sprint and/or T-Moble to do the same.

Its Amazing that Sky could ignore whats been happening in other markets for a long time and stuck to the same old same old. Maybe Sky doesnt care, they'll run it into the ground, sell it off and walk away having made plenty of dough over the years?
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby paulw » Tue Aug 08, 2017 2:22 pm

I had Sky from 1990 but gave it up in 2010 when I moved house. My M-in-Law still has my Sky account but pays it herself. The other day she saw the Herald article on the possible demise of Sky and went into panic mode. "what will I watch, how will I see trackside and the rugby?" I told her. that she will have to do what the rest of us do , watch FTA TV..

I have NZ Netflix now as apart from watching on a PC my Getflix DNS service no longer works on US Netflix via my Apple TV box but it does work nicely on Amazon TV box which is what I watch most ..

Will be interesting what Sky will do over the next year or two especially when the rugby rights come up for renewal. Will they bid on them with Amazon and then try to block Amazon from showing in NZ as they do with Netflix at present??
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Re: SkyTV in its death throes (8 Aug, 2017)

Postby Grumpy » Tue Aug 08, 2017 3:22 pm

My wife and I are two Kiwis who do not watch sport on TV and cannot stand watching sport on TV or anywhere (ooops looks like we are not good kiwis!). Accordingly there is SFA to watch on Sky now that they seem to have reorganised what were a couple of good channels. Perhaps I pull the plug on Sky at the end of the year (post-elections and if my wife will let me). Even Netflix seems to be struggling, at least in the gendres we are interested in....... you just cannot satisfy some people now!!

I think Sky will be around for some time yet but with a diminishing clientele (perhaps they should be getting into hidef VR. Mmmm there's a thought).
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