Sky with a side of Netflix could be on cards
Sky Television could follow British pay-television firm Sky Plc and bundle its service with Netflix.
Britain’s Sky no longer has any ownership connection with Sky TV, but appears to be lighting a path that Sky TV may follow.
Sky Plc chief executive Jeremy Darroch said customers with its latest decoders would be able to subscribe to a new Sky service containing Netflix later in the year. British media said customers would be able to pay for the services together through their Sky bill.
The deal follows another, under which Sky in Britain is also bundling online streaming music service Spotify on its platform.
The company’s chief executive, Jeremy Darroch, said ‘‘placing Sky and Netflix content side-by-side’’ would make the entertainment experience easier and simpler for its customers.
Sky TV chief executive John Fellet said it had had discussions with Amazon Prime and Netflix.
‘‘We would have no problems putting their apps up there, any more than we have problems putting free-to-air channels up on our platform,’’ he said.
‘‘If we can be the one source for all the content, that is a better place to be than just offering your own.’’
Fellet indicated such partnerships might have to wait on a technology upgrade that involves getting new set-top boxes and software from United States company Cisco.
The upgrade, which was a year away, would allow Sky to add apps to its set-top box and would provide an electronic programming guide delivered via broadband, rather than via satellite.
Fellet said the change would make it easier for customers to watch programmes on-demand.
Cisco’s software would allow Sky TV itself to become an ‘‘app’’, so Sky could potentially sell it separately from its set-top boxes.
Fellet said that might appeal to people who wanted to access Sky through an ipad and put it up on hotel screens when they were travelling.
Sky partner Vodafone began selling set-top boxes that provide access to both Sky’s programming and Netflix in October, under the brand Vodafone TV.
But customers have to pay for Netflix’s service separately. Unlike Sky Plc’s forthcoming service, it is not currently possible to put Netflix on a Vodafone bill.
Sky effectively cut its entry price and the price of all its bundles by $25 a month this week – for customers prepared to do without 18 news and entertainment channels that had previously been compulsorily included in its Sky Basic package.
However, the company has continued to face questions on why it is not offering its $29.90-a-month Sky Sport satellite service as a standalone package.
It is understood Sky cross-subsidises Sky Sport from its entertainment offerings, meaning it could not offer Sky Sport standalone at that price without losing profits.
The company does sell Sky Sport on its own through internet television offering Fan pass. But the pricing – which starts at $55.99 a month on a six-month contract – means there is no saving on its cheapest satellite Sky Sport bundle.
Sky spokeswoman Melodie Robinson said Sky had no plans to offer Sky Sport as a standalone satellite option, but it would be putting new offers into the market over the next 12 months that it hoped customers would find good value.