Amazon to buy Sky TV NZ? (22 Nov, 2018)

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Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby aardvark_admin » Thu Nov 22, 2018 7:58 am

This column is archived at: https://aardvark.co.nz/daily/2018/1122.shtml

Would it make sense for Amazon to make a move on Sky TV?

All the players in the subscription-based content broadcast/streaming industry know the importance of market dominance and/or monopoly -- so if Amazon made a move on SkyTV it would give them that crucial defacto-monopoly on sports broadcasting and it seems, based on their moves in the USA, this is presently a very strong focus for them. It would also effectively nix the possibility of Netflix doing a deal with Sky as they have in the UK, a deal that would reduce Amazon's chances of gaining anything other than a minor share of the market here.

Or does NZ really not even appear on Amazon's radar and will we be written off completely when the government brings in its ill-conceived "Amazon Tax" next year?
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Re: Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby Weasel » Thu Nov 22, 2018 8:58 am

What's in it for Amazon? Nothing, Sky's profit would amount to a fraction of a percentage of a rounding error in a spreadsheet somewhere at Amazon that's read by no one.

Sky UK? Did you miss the memo? Its now owned by Comcast.

Comcast, Dish Network, AT&T and friends have offered Netflix and other things as standard through their set top boxes. Netflix and Youtube are apps in my cable tv box. In the case of Netflix, if I search the cable tv guide for a TV show, movie, or seasons of tv shows, often netflix titles get stitched into the results to make up complete seasons, or are offered as relevant search results. Soon Amazon Prime Video will be added as an app on the cable box. This concept is nothing new, and it's been happening for sometime :-)
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Re: Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby latewings » Thu Nov 22, 2018 9:20 am

I suspect Amazon would 'Georgie Pie' Sky TV if they were to scrabble together some pocket change for the organisation.
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Re: Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby hagfish » Thu Nov 22, 2018 10:47 am

What I'd like to see is Amazon 'partner' with Spark, and have Spark re-sell Prime alongside (or instead of) Lightbox, as a 'free' value-add. Something-for-nothing, in other words. More likely is they'll want to ratchet up the average revenue per user. Everyone who wants internet telly now has internet telly. The only way to increase revenue is to push the price up.

I expect Netflix will quietly increase its prices by maybe 20% per year until the frogs start hopping out of the pot. They'll introduce more 'tiers' and more 'choice', which will translate as 'crap' and 'ads' unless you 'cough-up' for the same quality of service you used to have.
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Re: Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby mad » Thu Nov 22, 2018 1:46 pm

What's the "value add" for a deal like this...

from Amazon ( or Netflix's) POV all Sky is a an incumbent with a big pile of depreciating legacy assets ( decoders/Sat leases) and some IP assets (sports licences) that regularly come of for re negotiation anyway...

The growth of UFB gives them pretty easy access to households... I can't really see any upside for any purchaser.....

Sure its go cashflow... but last time I looked, cash wasn't something either of these companies were short of...
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Re: Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby aardvark_admin » Thu Nov 22, 2018 3:05 pm

The upside is that they buy all the sports rights that have kept Sky customers "on the hook" for so long. This would give whoever bought Sky an immediate audience of about 750,000 Kiwis. Grabbing that sort of market-share would (for Amazon) be very difficult at the moment because Netflix has picked up the "entertainmet" viewers and Amazon's offering is not nearly as strong as theirs -- hence their focus on sports.
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Re: Amazon to buy Sky TV NZ? (22 Nov, 2018)

Postby phill » Thu Nov 22, 2018 3:22 pm

from my observations
people like watching movies and binge tv series
but the dollar goes where the sports are
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )

i might live and eat in a sewer .. but hey look how many of these shiney things i have got
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