Tag: Sports

Thunderstorm on Sky’s horizon Maybe its has to unbundle channels

The Weekend Herald reports that Sky expects to have lost 45,000 subscribers by the end of the June 30 financial year. It has to do something to stem the flow. Salt Funds managing director Matt Goodson explained the problem.

“They have challenges and it appears that their audience is disaggregating somewhat. How they deal with that will be interesting to see, but the basic problem appears to be that they are having to charge too much for the non-rugby/sport packages in order to pay the ever-escalating costs of sports rights, but losing the audience that is not interested in watching those [sports] rights. Sky is having to charge too much for the non-rugby sport packages in order to pay the ever-escalating costs of sports rights.”

So, non-sports customers are paying too much and exiting the platform, he says. It can’t afford to raise the cost of the sports package too much because sports subscribers are the foundations customers.

Continue reading Thunderstorm on Sky’s horizon Maybe its has to unbundle channels

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