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

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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