SKT Sky Network Television Limited.

[RTM]

I think that the net technology is fast overtaking their business model. Take a look at the TVNZ Americas Cup coverage on line. Its great, no breaks for advertising at critical points. Their content will be steadily eroded over the next decade or so. We are all going to have to be much more nimble at finding what we want on the net. Not really sure how long Igloo will last. Can't see it getting great penetration.

Cheers, RTM.

[macduffy]

I think that the net technology is fast overtaking their business model. Take a look at the TVNZ Americas Cup coverage on line. Its great, no breaks for advertising at critical points. Their content will be steadily eroded over the next decade or so. We are all going to have to be much more nimble at finding what we want on the net. Not really sure how long Igloo will last. Can't see it getting great penetration.

Cheers, RTM.

OK. So it's not really in their hands to "change the way they operate"? Inevitably going the way of buggy whip makers, or is there some answer to the problem?

[RTM]

I had quite a discussion with them previously with respect to providing people what they want. Rather than the packages that they try to force on us. They were immovable over quite a period of time. I guess with the monopoly they had they could afford to be. Yes....a more flexible charging package might help a lot. So that folk can buy just what they want to view. At a reasonable cost. Suspect its going to need a big change in corporate culture and attitude tho. Otherwise, yes, they will really struggle long term.

[Zaphod]

Yeah I suspect SkyTv will die a slow death, unless they can adjust their business model somehow to adapt to what will be a new TV environment in NZ pretty soon. In addition to alternative sports viewing I was in the US last month and was blown away by how many people had Netflix and using it to watch Movies and TV via their home TV.
The only thing that is saving Sky right now is the sate of our internet speeds in NZ.

Netflix is overall a great service especially for the US$7.99 per month, however I've been underwhelmed by the selection of content. A quick search for the latest titles reveals a poor selection, a number of newer TV series have only the older seasons available and Netflix recently removed literally thousands of titles from availability as negotiations with rights-holders faltered.

Neither the broadband speed (we received 14Mbps/1Mbps on the old ADSL2 service) nor the cap (80GB was fine for watching a movies/TV series episode each night) has been an issue for us. Netflix streaming requires only around 5Mbps-7Mbps downstream for compressed HD content, so that is well within what ADSL2/VDSL can provide let along what the new UFB service is capable of providing.

So what can Sky do to compete? Firstly I think enabling on-demand HD streaming via the existing MySky units (they already have an Ethernet port on the rear of them) and potentially using the band-end iSky infrastructure would be a huge boost. Secondly Sky need to revisit their pricing and the way in which they package content in the face of imminent competition. Thirdly, Sky need to massively expand their current library of content.

[macduffy]

Thirdly, Sky need to massively expand their current library of content.

But that's a big part of the problem isn't it?

They can only offer that content if they buy it and in the EPL case they were outbid. Unfortunately, more content equates to either higher viewing prices or lower profits - or probably, both. However one looks at it, the investment attraction of SKT reduces.

[Zaphod]

I've not used Netflix in NZ, so does what you have said mean that your internet speeds enable you to watch Netflix stuff through your TV in quality comparable to ordinary TV?

Cheers

It's close to Sky SD but is quite variable due to Netflix not having any local content distribution system in Australasia. With local content distribution, we could receive the same HD/Super HD quality as Canada & the USA enjoys.

[Zaphod]

But that's a big part of the problem isn't it?

They can only offer that content if they buy it and in the EPL case they were outbid. Unfortunately, more content equates to either higher viewing prices or lower profits - or probably, both. However one looks at it, the investment attraction of SKT reduces.

Yes, you're right. From an investment perspective things are IMO not so rosy for existing holders. Long term however, Sky could evolve and I would hope that some of these steps are taken sooner, rather than later, despite the short-term SP pain it may generate.

[macduffy]

Yes, you're right. From an investment perspective things are IMO not so rosy for existing holders. Long term however, Sky could evolve and I would hope that some of these steps are taken sooner, rather than later, despite the short-term SP pain it may generate.

Any ideas how they might do that?

[macduffy]

Another perspective on SKT - from Nathan Field, GMI analyst:

http://www.gmi.co.nz/news/1478/sky-s...paign=football

[macduffy]

Nothing to do with SKT as an investment, but I had to smile today while watching some MySky of the recent Ashes test at the Oval when the following caption appeared on the screen:

"Press red button for live Ladies Ashes"

Yes, I realise Australia and England were also playing at the time, at Hove, but it did conjure up some macabre images!