Sky and Netflix team up for Sky Q
A match made in heaven, or the start of big problems for Sky?
Starting today, Sky subscribers can sign-up for access to Netflix without having to use another app or streaming device. Netflix content will sit alongside Sky's in the show selector when the feature is switched on in November.The privilege will cost Sky Q subscribers £10 on top of their existing package. Existing Netflix customers will be able to link their account for free. The added convenience of viewing Netflix within the Sky electronic program access (EPG) will certainly make life easier for customers. Sky already has existing integration, within its EPG, for other on-demand services. These include Spotify and YouTube.
Who will benefit the most from the move? Sky customer numbers have stagnated over recent years. In July, Ofcom revealed that 15.4 million people in the UK subscribed to online streaming services. This was the first time it had overtaken the 15.1 million that subscribed to ‘traditional’ pay TV.
At first glance, the idea of Sky pushing a rival’s streaming service programming as ‘equal’ to their own may seem strange. However, 40 per cent of homes with satellite and cable use an online streaming service already. In comparison, of the homes that don't pay a subscription for satellite or cable TV, only 28 per cent subscribe to an on-demand video streaming service. It would seem that services like Netflix are more likely to be a top up to existing paid TV packages, rather than a homes sole paid video content option.
The Sky and Netflix integration appears like it's a coming together of two equals. Both benefit, it would seem, from the other. People who pay for one service are more likely to use the others. Nevertheless, if viewers of Sky start watching more Netflix, than they do Sky programming, consumers might start to question Sky’s benefits. Are you a Sky subscriber who sees a benefit to this approach? Let us know in the comments.
To comment on what you've read here, click the Discussion tab and post a reply.