SKT Sky Network Television Limited.

[traineeinvestor]

Unless they can come up with a new business model, they I don't see how they avoid going the way of the video rental stores.

[Hoop]

Writing about Numbnuts...maybe the NZ stock Exchange should issue a "please explain" letter why the SKT share price closed 1.4% up today when the overall market fell 0.2%...

[Cricketfan]

People seem to be in agreement that Sky's days are numbered, so why are people still happy to invest? I would've expected the sp to have plummeted in recent times. Are people after the dividends in the short term? Or do the shareholders disagree with the general sentiment out there?

[Baa_Baa]

People seem to be in agreement that Sky's days are numbered, so why are people still happy to invest? I would've expected the sp to have plummeted in recent times. Are people after the dividends in the short term? Or do the shareholders disagree with the general sentiment out there?

Good question, but what part of this is not the SP plummeting? Check out the monthly chart approaching all time lows. Looks like a plummet to me, albeit in slow mo.

Attachment 8828

SKT is is deep sh1t, it is going south big time and has been for what is now a long time. After a long and successful reign with outstanding profits and dividends consistent with a monopoly supplier, Shareholders sometimes need to wake up to whether they are the frog that is being boiled, slowly cooked ending up dead in a frog soup.

[JeremyALD]

I've never seen so much backlash on Social Media for a change in pricing before. They have really pissed people off. Also they should of thought that most people subscribing to Fan Pass would be younger, more like to stream and more likely to post on Social. So glad I didn't invest, thanks Roger for talking some sense into me with this one.

[Cricketfan]

Good question, but what part of this is not the SP plummeting? Check out the monthly chart approaching all time lows. Looks like a plummet to me, albeit in slow mo.

It's dropping, but why would people buy at today's price if they agreed with the majority that Sky will be out of business in a few years and the SP will just keep dropping to zero?

[JeremyALD]

It's dropping, but why would people buy at today's price if they agreed with the majority that Sky will be out of business in a few years and the SP will just keep dropping to zero?

I think people realise it's going to be a slow death and they are still (currently) a very profitable business. They still have a monopoly on sports rights so they have a few years left to reenergise their business model before they start to lose their hold on sporting rights. With strong leadership and a new direction to the digital age the SP would present value, but sadly they are dearly lacking in both departments.

[martinchnz1]

http://www.nzherald.co.nz/business/n...ectid=11850847

Clasping for money.

[JAX]

http://www.nzherald.co.nz/business/n...ectid=11850847

Clasping for money.

Probably a good idea they save up as much as they can they are going to need it. Come 2020 when the Rugby rights are up - it all looks bad. Firstly the Rugby guys will be in an incredibly strong negotiating position knowing how desperate they will be to keep it. Then all sorts of others will probably take a ping at it to steal the market - or knock sky over - maybe even the likes of their old mates at Voda, but seems likely at least Spark will have a go, which will drive up the prices - when surely the prices SKY can charge the public are already maxed which will kill the profit margins - and then finally going by international trends - they rights are now being split between Satellite and Streaming, meaning they might actually end up paying the same but losing the online rights to someone else like a Spark or something - which will really hurt as they have proven time and time again competition is not something they can deal with. Streaming is getting to be a big deal now, what will be it like 3 years from now - SKY had the chance of a massive headstart in that tech which will inevitably be the standard in the next decades - but they are throwing it away.

At the very least even if they execute flawlessly and lock up the sports into themselves and convince people to keep the archaic decoders in their houses (and when does Sky ever do anything flawlessly) they will simply end up paying a lot more for the same. So yeah, all not looking so good.

[Entrep]

The thing with all this is that SKY produces the games via OSB which it purchased several years back (one of the most brilliant moves Fellet has made). OSB has several production trucks costing tens of millions of dollars each. No one else in NZ is equipped to produce the games. Broadcasting them via OTT if you have the feed is the easy bit. It would take a ton of capital to setup a rival production company. Then there's experience, commentators, etc. They are actually in a stronger position than most realise.