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?

New Zealand Marketing - - Fea­ture -

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.

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