Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Vodafone may grab Telecom customers as Sky TV deal ends

Vodafone likely to make grab for legacy TV customers as Telecom ends Sky TV deal

By Tina Morrison

Feb. 5 (BusinessDesk) – Vodafone New Zealand is likely to target Telecom Corp’s remaining Sky Network Television customers to increase its market share as the agreement between Telecom and Sky comes to an end in the next few months.

The decade-long agreement for Telecom to resell Sky’s pay TV service will end May 31, the Auckland-based companies said today. Telecommunication providers sell products such as pay-TV in a bundle with other phone services at a discount in an attempt to attract customers to their higher-value services.

Telecom, the nation’s largest phone company, hasn’t added new Sky TV customers since 2008 amid waning demand and as it investigates other ways to provide the service through its network or in the cloud. Vodafone is likely to try to lure over Telecom’s remaining 30,000 TV subscribers to add to the 100,000 it has acquired since it began selling TV services as a bundle, investors said.

“In the next few months as they migrate these clients off, you would expect Vodafone to be in a heavy marketing campaign coming up to rugby season about a bundled offering to try to attract those 30,000 across to them,” said Rickey Ward, who helps manage about $400 million in equities at Tyndall Investment Management.

Telecom’s remaining TV subscribers represent about 5 percent of its broadband base.

The end of the agreement with Sky increases the probability that Telecom may look to provide its own content, which is a higher-risk strategy than partnering with a content provider, Tyndall’s Ward said.

Telecom dipped its toe in the water last year when it partnered with Coliseum Sports Media’s premierLeaguePass.com website to offer online access to English Premier League football.

Still, Telecom is likely to struggle to compete without access to Sky’s high value rugby content, Ward said.

“We are not ruling anything out,” said Telecom spokesman Richard Llewellyn. “This is a reflection of a product we think has run its course. We see the future of television as being increasingly delivered over networks or the cloud. At this stage it is still very much about investigating possibilities.”

Sky TV has wholesale partnerships with phone providers as it benefits from their marketing efforts for bundled services. In 2012, the Commerce Commission began an investigation into Sky TV’s content contracts with internet service providers to check whether such deals tied up the market and prevented competition.

Shares in Telecom advanced 0.6 percent to $2.35 while Sky TV was unchanged at $5.74.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news