Thursday, January 31, 2013

Sky deliver (again) & major change of approach going forward

The strength of Sky's economic performance in difficult economic circumstances is to be admired. Without going into the details most of the main metrics for measuring performance were heading strongly in the right direction.

Of the growth in TV subs 50% of the growth was delivered by the NowTV product (a Sky LITE product if you wish delivered OTT via broadband).

In a major departure from the normal strategy of using SkySports channels within a bundle to draw other services along all Sky Sports channels will be available via NowTV for £9.99 for 24 hours.

The price point looks high but presumably this is to limit the current Sky Sports Subscribers who are occasional users of Sky sports churning off and watching @20 key events over the course of the year via NowTV. 

Given how buttoned up Sky are it is safe to assume they have researched the hell out of this and it no doubt reflects a changing consumer marketplace and increased competitive pressure from other OTT services such as NetFlix and possibly BT Vision going forward.

Either way we are seeing a faster shift toward digital by Sky and a gradual reduction in their reliance on the satellite platform.