Sky Tele­vi­sion slash ser­vice en­try price

Western Leader - - GARDENING - TOM PULLAR-STRECKER

Sky Tele­vi­sion has slashed its en­try price in a bid to shore-up its cus­tomer base.

The pay-tele­vi­sion firm would break its ‘‘Sky Ba­sic’’ ser­vice into two, giv­ing cus­tomers the op­tion to sub­scribe for a lim­ited set of chan­nels for $24.91 a month.

Ex­tra chan­nels cur­rently in­cluded in Sky Ba­sic will cost $25 a month, so there would be no change in the cur­rent price of $49.91 a month if cus­tomers chose to take all the chan­nels cur­rently of­fered with Sky Ba­sic.

The new pric­ing means cus­tomers could get a bun­dle in­clud­ing Sky Sports for $54.81 a month, in­stead of the cur­rent min­i­mum of $79.81, by ditch­ing some news and en­ter­tain­ment chan­nels that were now com­pul­sory in any Sky pack­age.

The change fol­lows an ex­o­dus of al­most 34,000 satel­lite sub­scribers in the year to June.

Sky said in a state­ment to the NZX that its board and man­age­ment be­lieved its new pric­ing struc­ture would help at­tract new cus­tomers by of­fer­ing ‘‘a cheaper en­try point for cus­tomers who do not want the full Sky pack­age’’.

But its shares slumped 3.6 per cent to $2.70 when trad­ing opened on the NZX as in­vestors fret­ted

‘‘The goal was to keep de­liv­er­ing to its "core tra­di­tional cus­tomers ...’’

John Fel­let, Sky chief ex­ec­u­tive

about the un­cer­tain im­pact the strat­egy could have on its fu­ture earn­ings. By 11am its shares had fallen 7 per cent, wip­ing $70m off the com­pany’s value.

Cur­rently all cus­tomers buy a Sky Ba­sic pack­age for $49.91 per month and then added op­tions of Sport, Movies and other premium chan­nels.

Un­der the new pric­ing plan, Sky Ba­sic would be re­placed with two new pack­ages called Sky Starter and Sky En­ter­tain­ment. Sky Starter would carry a smaller sub­set of 46 chan­nels in­clud­ing all the free-to-air chan­nels at a cost of $24.91 per month, while Sky En­ter­tain­ment would com­prise 18 chan­nels – in­clud­ing UKTV, Jones, Liv­ing Chan­nel, Dis­cov­ery, Vibe, CNN and BBC World and Sky News – at a cost of $25 per month.

Sky also an­nounced that cus­tomers who con­tin­ued to buy other prod­ucts, both Sky Starter and Sky En­ter­tain­ment as well as ei­ther Sky Sport or Movies, would re­ceive its premium drama chan­nel SoHo at no ex­tra cost.

Sky chief ex­ec­u­tive John Fel­let said its goal was to keep de­liv­er­ing to its ‘‘core tra­di­tional cus­tomers who en­joy lin­ear chan­nels, love MySky and are in­creas­ingly con­nect­ing their boxes to their home WiFi and ac­cess­ing our On De­mand con­tent’’, while build­ing bet­ter prod­ucts and ser­vices that ap­pealed to other cus­tomers.

TOM PULLAR-STRECKER/STUFF

The cheap­est Sky Sports bun­dle falls in price be­low $55 a month.

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