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.
That explanation fits our situation. We’re not a sporty household and the movies we like are usually not on offer with the Sky movies package. We ignore most of the channels on the basic package. Most of out time on Sky is watching these six channels. The first two are premium channels.
Rialto Channel: Because it is a bit offbeat and has some hidden jewels.
SoHo: Because it has must see top end US dramas.
History Channel: An eclectic mix of quality documentaries, once you get past the Third Reich obsession.
CI. Sometimes dated but there are some very good crime and investigations documentaries.
Lifestyle Channel: Because someone in our house is obsessed with the Antiques Roadshow.
Anyway, for ages I was paying about $90 a month for something that I estimated was worth, say, $40 of $50 to me. It made more sense to go with Lightbox or Netflix, whose content was not as fresh good, but which are a fraction of the price. In my mind there are two long term solution to remedy (but not solve) the problem with non sport customers leaving. One is to unbundle its premium channels or include. The other is make them part of the basic package. But Soho and Rialto are nice earners for Sky. Losing would send the business plan into a tailspin. And lets face it. Sky is in no rush to go down that road, Declaration: As a media commentator. I get Sky TV and Neon for free. Photo: YouTube.