Vodafone, Sky work closely on internet TV

Vodafone has launched a TV service that brings Sky Television, free-to-air and a range of online and app-based entertainment services, including Netflix, together in one set-top box system.

The Vodafone TV launch, held at an upmarket Auckland hotel on Monday, was short on detail. A launch date and pricing details were not available.

But Vodafone said the service, which won’t require a satellite, would only be available on 12- and 24-month contracts on a Vodafone Unlimited Fibre or FibreX plan. Those services are not available nationwide.

Vodafone TV will include unlimited broadband and Sky Basic, but customers will need a separate Netflix subscription and will also need to pay to add premium content such as Sky Sport, SoHo and SKY Movies.

Alongside Sky Basic, the service will include all free-to-air channels, premium subscription apps like Netflix and access to TVNZ OnDemand, ThreeNow, YouTube and iHeartRadio.

Viewers will be able to watch the content on tablets, smart- phones and TV sets. Data charges might apply, Vodafone said.

‘‘This is an exciting next step in our longstanding commercial relationship with Vodafone,’’ Sky chief executive John Fellet said.

Sky and Vodafone New Zealand have maintained their close partnership despite the country’s competition watchdog blocking their merger in February.

Questioned about their ability to work together following the merger denial, Fellet and Vodafone chief executive Russell Stanners said they had been talking about working together for a couple of years.

Neither would comment on what success would look like for Vodafone TV but Stanners did say he would like every fibre customer to take up the TV offer.

Fellet would not talk about whether he would reduce Sky TV prices as part of Vodafone TV. But he did acknowledge that the partnership was aimed at addressing the slide in traditional Sky customer numbers.

Stanners said Vodafone TV planned to add more apps and content but did not name specifics.

He said the telco would not move into the area of producing its own content.