Sky cuts fee as profit falls

Sky Television is dropping the hated $9.99 monthly fee that satellite customers have had to pay to access its programming in high definition, but will raise its other prices by an average of 1.9 per cent.

The changes will take effect at the start of April, from when customers who currently pay the HD charge will see a decrease in their subscription price.

All its satellite subscribers will now get its programming in HD at no extra cost. Customers have frequently complained about the fee, arguing HD is no longer a premium feature.

Sky shows more than 20 channels in HD, and said that would increase to more than 30 in the next few months.

The sweetener was announced as Sky revealed it was preparing for the loss of a further 93,000 subscribers by June 2023 and reported a 20 per cent profit drop for the six months to the end of December.

Dropping the HD fee is designed to make Sky better value, but departing chief executive John Fellet said it needed to increase the subscription price for its satellite services after holding them steady for three years.

The average 1.9 per cent rise would be roughly in line with inflation, Fellet said.

Sky said its total number of subscribers – including satellite television, Neon and Fan Pass subscribers – stood at more than 750,000 at the end of the year, down by more than 28,000 during the year.

The company said its ‘‘impairment model’’ had been adjusted, as it had previously modelled for a further loss of 57,000 subscribers by June 2023.

Sky’s profit fell nearly 20 per cent to $54 million for the six months ended on December 31.

Total revenue in the six months was down 8 per cent at $403m.