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

 


Sky TV 'would be pleased' with 10% customer uplift from VOD

Sky TV 'would be pleased' with 10% customer uplift from video on demand service: Fellet

By Jonathan Underhill

June 18 (BusinessDesk) - Sky Network Television will launch a subscription video on demand service by the end of the year in a challenge to Telecom Corp., ASX-listed Quickflix, Ezyflix and eventually US-based Netflix, which pioneered such offerings and will reportedly enter the local market officially in 2015.

Auckland-based Sky TV's new service would be free to existing customers and available for a fee to non-customers, accessible via PC, Apple iOS and eventually Android and Smart TV. The service would cost US$10 to US$20 a month, based on prices charged by overseas operators, chief executive John Fellet told BusinessDesk. The company is currently working out how much content to offer and is in talks with suppliers, he said.

"Instead of building linear channels, it (the content) all goes into a pool," Fellet said. "The Sky model still works but when we talk to non-customers, clearly this has demand which we want to fill."

The potential size of the business was still being analysed "but if we could get 10 percent more customers that just took this services we would be pleased," he said. "In order to keep growing we think we need to keep reviewing different business models. We will not be able to go from 50 percent to 75 percent penetration" with the existing pay-TV model.

Sky TV had about 51 percent market penetration as at Dec. 31, based on 857,111 subscribers and the nation's 1.68 million households.

Telecom expects to spend $20 million starting up the on-demand internet-TV service being developed by its Telecom Digital Ventures unit, with some $15 million to be spent on content alone. The company, which will rename as Spark in August, said Sky TV's decision underlines the expected demand for such services.

"We’ve obviously seen Sky’s announcement," said Telecom spokesman Richard Llewellyn. "While there isn’t a lot of detail, it clearly indicates there is a growing appetite for on-demand content delivered via the internet. So we consider the imminent launch of our internet TV product to be very timely. We’ll be revealing more on that soon."

Fellet said he isn't concerned about the risk of cannibalising his own customers, as happened with the Igloo budget set-top box venture with Telecom.

Some households want to have Sky but can't afford more than $25 a month. "If this is more appealing then that's fantastic. I would rather compete with myself than have someone else take customers off me," he said.

The service would be marketed by Vodafone as one of its bundles but the deal wouldn't be exclusive and Sky TV would talk to other telecommunications companies, Fellet said.

Netflix shares have soared 94 percent in the past 12 months and recently traded at US$443.65, valuing the company at US$26.6 billion. Sky TV fell 0.4 percent to $6.75 and has gained 16 percent this year, while Telecom fell 0.9 percent to $2.725 for a 18 percent gain year-to-date.

Morgan Stanley analysts say Netflix could win 20 percent of the 280 million international households with broadband access by 2020, Forbes reported this week.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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