SKT Sky Network Television Limited.

[Quantitative Easing]

I think the negativity around how the average spend per streaming user (ARPSU) being ~$20 is terrible because it is so much lower than satellite ARPU ($82) is unwarranted. It only considers part of the picture anyway.

The ARPSU of $20 only represents a fraction of Sky's available content.

Once Sky begins selling more of their content via Sky GO (as a standalone product) or add-ons/upgrades to NEON you will see the ARPSU increase.

If all of the current satellite customers converted to a SkyGO standalone product their ARPU would like be around $60.

Given the number of those customers this would significantly lift the ARPSU.

ARPU will increase with more sports being on Air and Sky Sports Now. I reckon they can afford to increase price of Sky Sport Now a little bit when sport is actually on. Spark is charging $25 for Fcuk all. Crony basterds.

[LEMON]

If all goes well, no takeover and Sky begins to move forward as a company and progress, overcoming the challenges in front. Where would we like see sky sitting in 5 years time? Just for fun and future prospects, don't take the question to serious but with all the information and greatminds on this thread, $1? maybe more or less?

[mistaTea]

ARPU will increase with more sports being on Air and Sky Sports Now. I reckon they can afford to increase price of Sky Sport Now a little bit when sport is actually on. Spark is charging $25 for Fcuk all. Crony basterds.

The bigger increase in terms of ARPSU will come when customers have a streaming platform where they have options to subscribe to entertainment bundles that are more comprehensive than NEON as well as Sky Sport.

Sky GO offers this - and I think the revamped platform will be very good if they get the On Demand be Linear mix/balance right.

No doubt the current $299.99 per year price for Sky Sport NOW won’t last - but even if the 12 month pass goes back to $39.99 per month it will have a more modest impact on lifting ARPSU than Sky Go.

[Dlownz]

The bigger increase in terms of ARPSU will come when customers have a streaming platform where they have options to subscribe to entertainment bundles that are more comprehensive than NEON as well as Sky Sport.

Sky GO offers this - and I think the revamped platform will be very good if they get the On Demand be Linear mix/balance right.

No doubt the current $299.99 per year price for Sky Sport NOW won’t last - but even if the 12 month pass goes back to $39.99 per month it will have a more modest impact on lifting ARPSU than Sky Go.

Offering sport at $299 a year is a master class. People look for savings and on the face of it it's a saving. If you advertise well you can lock in these people for a whole year rather than just getting them for a month or so.
All they need now is the rugby championship to start up now that no kiwi will be watching in a stadium in nz.

[mistaTea]

Offering sport at $299 a year is a master class. People look for savings and on the face of it it's a saving. If you advertise well you can lock in these people for a whole year rather than just getting them for a month or so.
All they need now is the rugby championship to start up now that no kiwi will be watching in a stadium in nz.

Oh I agree, offering a discounted annual sub is brilliant - Sky get all of the money upfront, the customer makes some savings but is tied in for a year.

$299.99 is $25/month though - and that won’t last when sport gets back to normal (and Sky has to pay the full amount). But maybe they can offer $399.99 for an annual pass (~$33/month) versus $39.99 per month casual. That would still be a whopping 17.5% discount as a loyalty reward.

Also, the $299.99 pass only kicked in recently, I am not sure if it was available in June. If it was it would have had a modest impact on the APRSU result.

Interesting also that only 10% of satellite customers just take sport with starter. The vast majority of customers take Sky Entertainment too.

Hence, provision for adding more Sky content to their streaming services is going to be important to life ARPSU. A lot of customers value Sky’s other Entertainment content.

There is probably some content that could naturally be added to NEON as an upgrade (I.e get movies + box sets only for $13.99 but you can add Discovery content for another $X.xx).

And obviously Sky GO is going to play a big role. Many customers are happy to spent their savings. So if they don’t have to pay $15-$20/month for MySky they may pick up Movies etc.

[Dlownz]

Oh I agree, offering a discounted annual sub is brilliant - Sky get all of the money upfront, the customer makes some savings but is tied in for a year.

$299.99 is $25/month though - and that won’t last when sport gets back to normal (and Sky has to pay the full amount). But maybe they can offer $399.99 for an annual pass (~$33/month) versus $39.99 per month casual. That would still be a whopping 17.5% discount as a loyalty reward.

Also, the $299.99 pass only kicked in recently, I am not sure if it was available in June. If it was it would have had a modest impact on the APRSU result.

Interesting also that only 10% of satellite customers just take sport with starter. The vast majority of customers take Sky Entertainment too.

Hence, provision for adding more Sky content to their streaming services is going to be important to life ARPSU. A lot of customers value Sky’s other Entertainment content.

There is probably some content that could naturally be added to NEON as an upgrade (I.e get movies + box sets only for $13.99 but you can add Discovery content for another $X.xx).

And obviously Sky GO is going to play a big role. Many customers are happy to spent their savings. So if they don’t have to pay $15-$20/month for MySky they may pick up Movies etc.

You have to find the sweet point and I myself think 299 is it. People may only sign up during a all lacks season. (3 months of the year). So even if it was $50 a month. Your only bringing in $150. But if you offer it as a yearly well people see the saving and go for it. You have them locked in a year and as long as they don't unstick a box it rolls over the next year. Example xbox live cost $80 a year or you can get a monthly for 12.99 ish. Don't quote me. Huge saving.

[mistaTea]

I would also like to share some thoughts about the new set top box (STB) they are seriously considering.

I am sceptical.

Remember, Vodafone TV customers are included in the ARPSU figures of ~$20. Sure, Vodafone get to clip the ticket on any Sky bundles that are purchased on that platform...but if the Vodafone TV customers are taking packages in a similar way that Satellite customers are, then I would expect Sky to still be getting $50-$60 per customer on average.

If a significant amount of the 404K streaming subs were taking Vodafone TV, and paying Sky $50-$60 on average, I would expect APRSU to be much higher than $20 (especially given the average Sky Sport NOW sub was probably just over $40 too).

Now,I don't know the breakdown of the 404K subs - but clearly the vast majority right now are NEON subs. Damn near three quarters of these subs will be NEON right now.

So let's say the remaining 104 subs are split between Vodafone TV and Sky Sport NOW. What would that look like? 60/40? 70/30?

I don't think Vodafone TV has been very successful - because after a couple of years they only likely have 60 or 70 thousand customers (my best estimate).

Yet their platform is good now - it is reliable, not the best usability on the market but leagues ahead of MySky...it let's you house the most popular apps like NETFLIX, NEON, Amazon Prime, YOUTUBE, TVNZ On Demand etc...

It is a solid offering, and only costs $179...yet it does not seem to me to be that popular.

Now, maybe the box Sky are talking about will be 'even' better than VTV. Better UI, voice search, better remote control etc...but I dunno...

If loads of people wanted to stream Sky TV with a new STB I would have expected the uptake of Vodafone TV to be significantly higher by now. The fact that it isn't makes me question whether a new STB for Sky is going to do the trick.

Or is the reality now that most people don't want to stuff around with buying STB's...they just want to download an app, sign up and start watching?

People who want a STB are already spoilt for choice imo with AppleTV 4K, Vodafone TV, Smart vu...

No doubt Sky are considering all options, and they will have the recent customer survey results feeding into their decision...but I am not convinced, and it could end up being a flop. Or a only a partial success perhaps.

[mistaTea]

You have to find the sweet point...

Agree 100%, and if $299.99 is a sustainable sweet spot in 'normal times' then fantastic. Time will tell - but right now, signing up to Sky Sport NOW for a year is a no brainer even if you only enjoy a fraction of the sport they have on offer.

I have just used about 200GB of data in 5 days because I have had Sky Sport NOW streaming on my laptop pretty much all day while also watching some NEON and NETLFLIX shows

[Dlownz]

I would also like to share some thoughts about the new set top box (STB) they are seriously considering.

I am sceptical.

Remember, Vodafone TV customers are included in the ARPSU figures of ~$20. Sure, Vodafone get to clip the ticket on any Sky bundles that are purchased on that platform...but if the Vodafone TV customers are taking packages in a similar way that Satellite customers are, then I would expect Sky to still be getting $50-$60 per customer on average.

If a significant amount of the 404K streaming subs were taking Vodafone TV, and paying Sky $50-$60 on average, I would expect APRSU to be much higher than $20 (especially given the average Sky Sport NOW sub was probably just over $40 too).

Now,I don't know the breakdown of the 404K subs - but clearly the vast majority right now are NEON subs. Damn near three quarters of these subs will be NEON right now.

So let's say the remaining 104 subs are split between Vodafone TV and Sky Sport NOW. What would that look like? 60/40? 70/30?

I don't think Vodafone TV has beeb very successful - because after a couple of years they only likely have 60 or 70 thousand customers.

Yet their platform is good now - it is reliable, not the best usability on the market but leagues ahead of MySky...it let's you house the most popular apps like NETFLIX, NEON, Amazon Prime, YOUTUBE, TVNZ On Demand etc...

It is a solid offering, and only costs $179...yet it does not seem to me to be that popular.

Now, maybe the box Sky are talking about will be 'even' better than VTV. Better UI, voice search, better remote control etc...but I dunno...

If loads of people wanted to stream Sky TV with a new STB I would have expected the uptake of Vodafone TV to be significantly higher by now. The fact that it isn't makes me question whether a new STB for Sky is going to do the trick.

Or is the reality now that most people don't want to stuff around with buying STB's...they just want to download an app, sign up and start watching?

People who want a STB are already spoilt for choice imo with AppleTV 4K, Vodafone TV, Smart vu...

No doubt Sky are considering all options, and they will have the recent customer survey results feeding into their decision...but I am not convinced, and it could end up being a flop. Or a only a partial success perhaps.

Its a interesting avenue to go down. I'd be interested although if and when I upgrade my TV they are all smart tvs now anyway so everythings on your remote anyway. Currently I use a chromecast and I'm quite happy with it. I have Netflix and neon. But want amazon prime and maybe Disney

[mistaTea]

Its a interesting avenue to go down. I'd be interested although if and when I upgrade my TV they are all smart tvs now anyway so everythings on your remote anyway. Currently I use a chromecast and I'm quite happy with it. I have Netflix and neon. But want amazon prime and maybe Disney

Yeah Chromecast is very good - and let’s your smart device become your remote.

Easy to use, provides a very reliable stream and is dirt cheap.

A Chromecast that allows 4K costs about a hundred bucks.

Many TV’s that aren’t ‘Smart TV’s’ still have NETFLIX and YOUTUBE as apps on them.

So yeah, I dunno - there are a lot of offerings out there for streaming.

Maybe this new box will be so super amazing that everyone wants one.

I dunno, but I am very very sceptical at this stage.

Would love to be proven wrong on this of course!!