Spark is pooh-poohing the Sky TV-Vodafone merger. But by playing down the importance of its own TV venture called Lightbox, Spark implies it does not really plan to compete in the emerging video market. Reacting to the merger announcement today, Simon Moutter said Spark did not compete with Sky.
The real competition in the future of media is with global over-the-top players like Netflix, YouTube and Apple or with direct-to-consumer premium sports content owners, he said. “The reality is that Spark has been competing successfully with a tightly integrated partnership between Vodafone NZ and Sky TV for a couple of years now. Vodafone NZ has been bundling and deeply discounting Sky TV products while Sky TV actively resells Vodafone NZ broadband, he said. “During that time Sky TV’s core subscriber base has declined while Vodafone NZ’s broadband base has had little or no growth since they acquired Telstra Clear nearly four years ago.