John Baker, managing director at Lassoo Media
Why do you think Sky and Vodafone are so eager to merge? They’re both successful businesses already, so what’s the possible motivation behind this deal?
I think this is a reflection of Sky’s need to future proof its business and specifically about moving its obsolete distribution technology/network to the internet and migrating away from scheduled programming to a better user experience along with the evolution of its revenue/product model to enable greater flexibility and consumer choice. While there is no reason they can’t do this alone, a partnership with Vodafone would appear to be able to accelerate it and perhaps mitigate the investment requirement. On the other hand, wholesale access to Sky content would give Vodafone a competitive advantage but once again, the same argument applies with respect to this being possible now. I am not sure I agree with the Commerce Commission’s call on this one either.