Sky prices changing.

[altis]

From 1st September:

http://news.bbc.co.uk/1/hi/business/4118930.stm

Also note that the £13.50pm entry-level package is being phased out for new subscribers.

[Jules]

I am not sure this is a wise move on there part

[Chrysalis]

So let me grasp this, sky had dissapointing growth figures so they responded by ummm. raising prices.

[Gareth]

I would hope that Sky will be introducing something new or different to justify the increase. I can't see how increasing the prices but offering the same package will attract more customers.

[Paul]

They are linking the price rise to the new services they are launching in the future (BB users will be able to access donwload on demand services for certain channels within their subscription packs. Plus they are also launching a mobile content service too.
http://media.corporate-ir.net/media_...leaseFINAL.pdf

[zoombini]

Oh no...
I suppose that this will be a get out for those still within a 12 month contract?

[Licinius]

Sky's strategy has been based on the fact they believed everybody who wants sky, already has it! Therefore the only way to increase profits is for existing subscribers to pay more (hence pay per view).

[Nugget]

Originally Posted by Licinius

Sky's strategy has been based on the fact they believed everybody who wants sky, already has it! Therefore the only way to increase profits is for existing subscribers to pay more (hence pay per view).

I doubt that very much. In a country with 60million people, only approximately 7 million have digital television (taking into account Sky, NTL, Freeview and whatever else).

I would think that Sky in no way believe that they now have all of the subscibers that they're going to get - with a potential additional, what, 35 - 40 million customers, this would explain why they are trying to make the various packs more attractive (oh, and explain why you can't switch any channel on without at least 15 adverts for Sky).

Oh, and aboard (incase nobody else has said it )

[Licinius]

Sky subscriptions rocketed in the early days 15+yrs ago but have remained static for best part of the last ten years now. The problem is even if you do pay £40+ for the skyworld package...... its not enough! You still need to pay extra for the latest films & best sport which was included in the early days.

This has left the skyworld package unattractive & has actually cost sky revenue rather than increase it

[TheBlueRaja]

Originally Posted by Licinius

Sky subscriptions rocketed in the early days 15+yrs ago but have remained static for best part of the last ten years now. The problem is even if you do pay £40+ for the skyworld package...... its not enough! You still need to pay extra for the latest films & best sport which was included in the early days.

This has left the skyworld package unattractive & has actually cost sky revenue rather than increase it

There is a lot of truth in that - they are in effect cutting down the amount of money they would have taken from me had it not been for the way they have moved a lot of stuff - especially movies - onto boxoffice.

I cant see why anybody would get skymovies now - it seems to be that all the good movies are on box office (surprise, suprise) but when previously i may have paid a subscription to get the movies if the stuff that was on box office was in the normal movies package - i rarely even bother to check box office, and in fact since i got my sky installed i have used it once.

A similar thing - although to a lesser extent - is happening with the football, which for now i will stay subscribed too, but as soon as all the good stuff moves onto box office, that'll get cancelled and i will on the occasions im not down the pub watching them - get the ones i really want to see on demand.

However i will be paying less that i would have done for the subscribed package.

[Chrysalis]

I agree, sky have realised growth will be stagnant and looking for others ways to grown their revenues, football is slowly moving to PPV with the birth of premiership plus and sky sports extra.

[Licinius]

In the meantime sky will try to bleed as much money as possible from its existing subscribers with offers such as sky+, sky multi-room, premierplus etc etc.

Hopefully now they're trying to increase their market share again, they may realise that the way to win customers is to provide the value for money service which we havn't seen since the mid 80's

[Chrysalis]

But is market share everything?

I see one company (sky) going for profit per customer and another company (ntl) going for market share, one company is a lot more healthier then the other.

[etccarmageddon]

Originally Posted by Chrysalis

But is market share everything?

no, the future is everything!

I see one company (sky) going for profit per customer and another company (ntl) going for market share, one company is a lot more healthier then the other.

NTL are in a better position though as SKY are using a platform which isn't as powerful as NTL's. SKY have Sky+ at the moment which is miles better than NTL's current TV service and SKY are making loads of dosh but...

NTL have a direct 2 way link with the customer - Sky have a one way link and dont have video on demand.

and BT are on their way with a broadband pvr thingy.

www.pvruk.com/pvruk/2005/07/bts_broadband_t.html

[Chris T]

Originally Posted by Nugget

I doubt that very much. In a country with 60million people, only approximately 7 million have digital television (taking into account Sky, NTL, Freeview and whatever else).

I would think that Sky in no way believe that they now have all of the subscibers that they're going to get - with a potential additional, what, 35 - 40 million customers, this would explain why they are trying to make the various packs more attractive (oh, and explain why you can't switch any channel on without at least 15 adverts for Sky).

Oh, and aboard (incase nobody else has said it )

Sky will be doing very well indeed to capture many of those millions - remember there might be 60 million people in the UK but that includes every man, woman and child in the country. There are actually only about 35 million households, and $ky has 7 million of them already. Cable and Freeview between them have, IIRC, about another 5 or 6 million.

Sooner or later, everyone is going to have to go digital but Freeview will take most of the rest by default, because integrated DTV sets are going to become more common in shops as we get closer to the analogue switch-off. People who want the extra channels you get with pay-TV have now had something like 20 years to get it if they want it. Sky is under pressure to constantly make more and more money, because that's how the stock market works, so they are under pressure to make more cash in ways that don't involve signing up too many more subs.

TBH in my case it will probably work - I'm on the £13.50 entry package at the moment, on which you get bog all. We only really have $ky at all because there's no TV reception worth speaking of out here. But for an extra £1.50 a month I might well trade up for the extra dozen channels that I might just watch from time to time.