If brains were dynamite Sky TV wouldn’t have enough to blow their nose

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You are probably wondering why I put an advert from Facebook and Sky TV on this post. Well, look carefully, it shows how retarded their business model is when they are giving away free Wifi cables. Think about it.

Meanwhile people are leaving Sky because it’s too expensive, so Sky puts the prices up.  It beggars belief really. More retarded thinking.

Sky TV is to raise the price of its basic subscription package and its sports package despite a fall in the number of subscribers according to a report.

The monthly price of Sky Basic will rise by $0.69 to $49.91, while Sky Sports will increase by $1.61 to $29.90 a month.

On May 6, the pay-TV operator warned that subscriber numbers were expected to fall further this year, leading to earnings next year missing analysts’ expectations.  

The Auckland-based company forecast it would have 830,000 subscribers at the end of its financial year on June 30. Subscriber numbers dropped 1.5 percent last financial year to 851,561.

It expects to lose 45,000 core residential pay-TV subscribers this year and gain about 25,000 subscribers for its online services such as Neon and FanPass.

Analyst Morningstar responded to that announcement by calling for the company to cut prices in order to compete with rivals like online streaming services Netflix and Lightbox.

Shares in Sky had traded at $5.49 prior to the May 6 announcement. They have yet to recover and closed up 1 percent at $4.04.

If Sky TV ever loses the Rugby then they are rooted. It is only a matter of time before they get shanked.

Their business model is rooted, restrictive and expensive. In five years time they will be struggling.

– Newshub

 


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  • one for the road

    In 5 years they are more likely to be gone! They are so welded to the satellite that the new internet only competition are running rings around them – so what does Sky do, it launches a “me to” internet service but you need to connnect the sky box to it and the web interface on iSky is a load of crap. My smart tv and the internet works so well. Why havent they produced a smart tv app (like netfix, even Lightbox has one)?

  • Richard

    They are also losing out, when they allow up to 3 devices to access content at any one time.
    The original subscriber can give out their gmail address and pin# to whoever they like, enabling friends and/or family to piggyback their way to free access.

    • John Q Public

      You got it. Do it myself. I used to sub-let an ‘extra room’ connection too, which is a great method too, as it was win/win, but now stick with ‘shared GO’

  • SirHoraceGentleman

    If Sky didn’t have the rugby( and to a lesser extent the cricket) I wouldn’t even think of having it. They have taken their customer base for granted for so long.

    • Ross

      More importantly, the cost of paying Sky to watch rugby is rapidly increasing. I can’t watch golf or football on Sky now (or at least most of the content) so my pro rata rate for rugby has massively increased. Basically I pay $110 per month to watch a wee bit of rugby (mostly international games anyway) and Formula 1. 0800 759759 is the number you say…?

      • John Q Public

        Always ring the sales number, as you get answered. 0800 GETSKY

    • jv7

      Their customer service is abysmal – has been totally unresponsive,don’t care for ever.

  • JustanObserver

    I have got my Sky through Vodafone.
    3 weeks ago, I called Vodafone because my step-son is using all of my 80Gb limit Skyping his girlfriend at Uni each night … !
    So I asked if I could go to Unlimited.
    Not a problem, and to top it all off, if I committed to 12 months of the whole package, I got Sky Sports free.
    … ‘Ka-Ching’ , you beaut , what else do you want to give me for free, how about So-Ho … ok, What about VDSL … ok, what about a month free … no-sorry.
    Anyway, I landed unlimited VDSL, and my Sky subscription for $42 less per month than what I was previously paying.
    Thanks Vodafone.
    Sky might be a rip-off, but it is the least-hassle rip-off.

    • stephen2d

      80Gb on Skyping?? I think your stepson might be doing something else all night ;)

      • James M

        My thoughts exactly.

        • JustanObserver

          haha I don’t wanna know !!

    • STAG

      you’ve inspired me!

    • STAG

      15mins on the phone and they’ve knocked 25% off what we were paying.

      • JustanObserver

        If you don’t ask … you don’t get.

      • rantykiwi

        21 minutes on the phone and Sport is free for the next 6 months. They’ve probably got me tagged as a problem client now too.

  • Woody

    Recently we had an internet service come available with enough speed to be able to watch movies, shows etc using that method. We do still have Sky but we have cut some services. I would can Sky altogether but in the interest of marital harmony that won’t happen until I can find an online source for some things which my wife wants to watch, once that happens I will easily be able to justify not paying them anything any more.

    Most of what they offer we are not the slightest bit interested in plus we really enjoy watching what we want to when we want to using the internet.

    • JC

      Same situation here. Once I can get rugby elsewhere and she can get the Jones Channel and Antiques Roadshow somewhere else we’re off.

      JC

    • STAG

      I’m just to lazy to change, HIND wants it gone, we pay $220 a month for MySky, unlimited internet, phone and an additional decoder with Sport and SOHO.

      Lazy not to get rid of it, and we have NetFlix, strangely the only thing I tend to have on TV is Edge-TV for the music.

      • The Fat Man

        Well done I heard of someone who watched the latest GOT fro FREE hours before it was released in NZ.

    • FornaK

      Sounds like a cry for help Woody. What shows are you needing to find on the Internet for the Mrs?
      Maybe some Oilers would be able to help you out big man?

      • Woody

        Not so much a cry for help as a cry of frustration. I also have a couple of thinks I like to keep up with, V8 Supercars in Aussie being one but my wife enjoys wide rang of horse related shows, ranging from the likes if top level eventing through to western training shows out of the States and Canada.

        I have not done much in the way of serious searching yet as we haven’t had good quality internet for all that long yet.

  • Bartman

    This is basically Sky saying “we’ll bleed our idiot customer base to death”. Nice tactic, hope they have a new model organised in time!

  • Graeme

    Be achange if they would invest in some uptodate programs instead of the eternal repeats.

  • D-Rad

    Sky is being cancelled this month… we NEVER watch it. We use the sky box to access 1 & 3 – I haven’t watched TV2 since we moved back to NZ a year ago. Got SKY as our house only has a sat dish no antenna, didn’t realise I could get a Satellite receiver (that was stupid) it was good while my wife was home with our son, but she is back at work. I occasionally watch the History channel and she sometimes watches E!. For $13 we have Netflix, can purchase all the other stuff we want through Apple TV (we have AU apple account) and would never come close to the $48 it costs for SKY.

  • cassandra

    Well, it’s a legitimate business tactic for dying businesses to milk their declining customer base for cash, maximising value before the service is switched off.

    Given the decreasing value in a complex, diluted super rugby season, the decreasing value in not having golf etc and the very cheap alternatives for procuring drama/ movies sky is certainly not trying to win over customers via a value proposition so I presume the board has just said “let’s milk it”. Or perhaps they haven’t got the guts to tell shareholders that the only way to give the business a chance at long term survival is to immediately cut rates to an extent profits more or less disappear?

  • The Fat Man

    Cut my Sky off in 2007 never missed it.

    $65*12*9 = $7020

    And with price increases I am saving even more.

    That’s a lot of hours before TAX that I did not have to work.

    • FornaK

      How much is negated by discretinary spending at the pub, or by your mrs increasing her shopping budget, with the extra $65 per month??.

  • Keanne Lawrence

    Makes our 28 channels on Cignal for 600 Peso (NZ$18.30) look like a real bargain. No rugby coverage though but we do get to see the blow by blow Senate enquiries Live! Latest is a massive money laundering scheme with enough English in the questions and answers to get the gist.
    Funny you think they will be struggling in 5 years. They already seem to overlooking all the alternatives available like they still have a monopoly.

    • FornaK

      Pml how the he’ll did you end up watching a Mexican news channel? Sounds like a scene out of Anchorman!!

      But really KL, how or why did you chose Cignal?

  • Wayne Hodge

    Sky does not understand that the world has changed.

  • Dumrse

    That will be 45,000 and 1.

  • Superman

    I have had Sky for more than 20 years. I loved watching the English Premier League but it’s gone. I love watching PGA golf but it’s gone. Ironically the PGA tournaments are live at a good time for us, from 5 or 6 in the morning and I was looking forward to being able to watch once I retired but 6 months before my retirement Sky dropped the PGA. I am still a subscriber as rugby is still my number one passion but I am just waiting for an alternative and then Sky will be gone too.

  • old school

    Sky understands it only too well. It knows the horse is dying and it going to flog it all the way to the end.

  • Anthony

    The NZRU needs to create its own online rugby channel. Even if it charged $30 a month for it – it would still be a big saving for sports fans who will soon have to pay Sky nearly $50 + $30 a month even if they never watch any other Sky channel other than Sport and free-to-air material.

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