SKT Sky Network Television Limited.

[bull....]

netflix launching in march 2015

[Zaphod]

Whats happens to NZ content rights when Netflix arrives?

It depends what rights Netflix have managed to negotiate and until Netflix release pricing and programming, we just won't know....

Sky will have known that Netflix (and other services) were negotiating content rights with rights holders along side them, so this won't come as a surprise.

Will Sky improve their service offering as well as reviewing their price? The answer to that will be very interesting.

[brend]

I'm interested to know if the content will be exactly the same as US? I'm currently using the backdoor methods to netflix and will continue to do so if the content availability is significantly differently. I'm also about to cancel my sky subscription...nothing appeals to me other than sport (rugby and league)

[robbo24]

I'm interested to know if the content will be exactly the same as US? I'm currently using the backdoor methods to netflix and will continue to do so if the content availability is significantly differently. I'm also about to cancel my sky subscription...nothing appeals to me other than sport (rugby and league)

Yeah man, Sky Sport is the only good thing about it.

[xafalcon]

It is also likely that as contracts roll over, the rights will be broken down into various modes of transmission and sold on that basis - linear programming, streaming, back-catalogue etc. Each transmission mode will appeal to different companies/subscribers. As streaming becomes more prevalent, the shortcomings will also be highlighted, esp bandwidth. Customers will not tolerate buffering, and will vote with their wallets. On this basis I see SKT as being insulated as their current moves on transmission consolidation will free up transponder capacity, allowing more HD content. 4K will expose this further, when it comes to NZ

[Zaphod]

What media rights are currently sold by transmission medium? My peers who work in the media industry have said that the major NZ networks and streaming providers are all purchasing rights to content on an exclusive or shared basis irrespective of the medium used.

[KiwiGekko]

I predict Netflix will be wildly successful because it's already been successful. Having it available here legitimately will only boost its profile & ISP's will begin to offer 1 click region switching which bypass the "pesky" content restrictions -- Not much of a prediction as this is what they're already doing.

It is also likely that as contracts roll over, the rights will be broken down into various modes of transmission and sold on that basis - linear programming, streaming, back-catalogue etc. Each transmission mode will appeal to different companies/subscribers. As streaming becomes more prevalent, the shortcomings will also be highlighted, esp bandwidth. Customers will not tolerate buffering, and will vote with their wallets. On this basis I see SKT as being insulated as their current moves on transmission consolidation will free up transponder capacity, allowing more HD content. 4K will expose this further, when it comes to NZ

I haven't heard anything about the licencing based on transmission in any conversations I have had with people in the industry - is this happening overseas anywhere? In a recent conversation I had with a friend, the current state of the rights was an advantage to SKT - if Netflix were able to purchase rights for online streaming (this would be news to me) - I can only see that as being positive for Netflix and negative for SKT.


Regarding your comments about the quality of Netflix (streaming TV) - speaking as someone who uses Netflix, knows a lot of people using Netflix and my knowledge of the Internet in general (over 10 years working in this industry) - I can assure you that your concerns here are unfounded.


Firstly, Netflix is very reliable without any form of CDN (Content Delivery Network). Of the 10+ people I know who use Netflix, I can't recall anyone ever saying to me "that bloody Netflix is buffering all the time". I cannot find the quote, but there was an article quoting the Netflix CEO as being surprised how well it worked down here. This is without any (to my knowledge at least) ny CDN / Caching nodes in NZ.


Don't take my word for it though, lets have a look at a similar provider and how NZ ISP's solved streaming video (and buffering). Youtube is a good example, they contributed ~ 13% of download traffic in 2014. Many years ago buffering on Youtube was a massive problem - you couldn't watch music video's during peak (after 6pm) without putting on the kettle and making a cup of Tea. Today, this problem is largely solved by a number of improvements, but the main way? Google Global Cache: https://peering.google.com/about/ggc.html - This project provides a server (or farm of servers) which cache the content within the NZ ISP's network and means the content is delivered locally. Once you understand that this is happening in every major ISP it is fair to assume NZ ISP's know a thing or two about caching video content near their customers, so the question becomes: How does Netflix stack up? Have a look at Netflix Open Connect: https://openconnect.itp.netflix.com/ - same idea, slightly different name - if your internet is faster than 25mbps 4K video will work sweet as.


The way I see it SKT has one thing: Sports (Rugby) - they did have the EPL, until they lost these rights & I expect they'll be keen to get it back next year when the rights are up again. This is their strength and what they are good at. Competing against a juggernaut like Netflix? With their current strategy and track record I cannot see them winning that one and consider it a losing battle. How do you compete against a provider who has a very good track record (Netflix are producing their own content now - competing against the major studios in the US) and are much better resourced - have a quick look at their vast application support: http://en.wikipedia.org/wiki/List_of...atible_devices - By comparison Neon currently supports your laptop or iPad / iPhone - content rights might be a short term roadblock, but how is SKT going to compete with the fact I can install Netflix on pretty much any device I have in my house. I don't think they can and once Netflix start gobbling up the rights over here - SKT will be left with its sports channels.


If I were valuing SKT right now (I haven't so please DYOR) - it would be for sports only, the rest is a very big bet.

[ozzie]

Very interesting KiwiGekko For further confirmation of SKT's bleak outlook I'd note that it's share price has managed to drift inexorably down during the
best rally in the history of the ASX - how is it likely to perform during a market reversal? Apart from the competition from Netflix and others and the falling
NZ dollar, there's also the problem of growth in a country with such a tiny population. Re Netflix I see today they've announced they'll be having their official
launch on March 24 in NZ, which I can't see having a positive impact on the share price :P

[KiwiGekko]

Very interesting KiwiGekko For further confirmation of SKT's bleak outlook I'd note that it's share price has managed to drift inexorably down during the
best rally in the history of the ASX - how is it likely to perform during a market reversal? Apart from the competition from Netflix and others and the falling
NZ dollar, there's also the problem of growth in a country with such a tiny population. Re Netflix I see today they've announced they'll be having their official
launch on March 24 in NZ, which I can't see having a positive impact on the share price :P

Yup, Netflix announced today a partnership with Vodafone - further evidence the ISP's are gearing up for this and I expect the marketing teams will be keen to make sure they get it right too, even if Marketing and Engineering don't always talk .

The other company which experience a negative impact from Netflix launching is going to be Spark and its Lightbox. This is Ferrit all over again, and it will eventually be mothballed, just wait and see.

[Hoop]

Yup, Netflix announced today a partnership with Vodafone - further evidence the ISP's are gearing up for this and I expect the marketing teams will be keen to make sure they get it right too, even if Marketing and Engineering don't always talk .

The other company which experience a negative impact from Netflix launching is going to be Spark and its Lightbox. This is Ferrit all over again, and it will eventually be mothballed, just wait and see.

post deleted chart removed...Paper tiger will be happy now...I'm NOT!!!