Has Sky passed its sell by date?

Discussion in 'Sky Digital TV Forum' started by Faust, Jan 31, 2009.

  1. Faust

    Faust
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    Does anyone else think Sky’s current business model has passed its sell by date? I have had Sky for quite a number of years now and have always enjoyed the service. However, I have become increasingly disillusioned with it over the last eighteen months or so. First to go was Sky Movies – total rubbish became the view in our family. I know Sky can only put on movies that are being made but how many rom coms or yet another teen movie can one stand?

    Since dropping down to Family Pack it has become increasingly obvious that we are watching less and less on Sky as a lot of the American shows have now finished – Stargate franchise, Harry Dresden, Dead Again, Buffy etc. etc. So much so that I have kept a family viewing diary over the last month with some astonishing findings. We have watched only two programmes from the Sky package during that time and both of them was me watching the Discovery Channel.

    Were it not for the £5 per month broadband package (family pack and broadband still works out a pound cheaper than BT) then Sky would be history in our house as we could easily get by with a Freeview PvR.
     
  2. Starburst

    Starburst
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    Given last weeks official quarterly results published to the public then I think the answer in general is a very definite no.

    That's not to say in individual circumstances both for current, former and those that have never had PAY telly for whatever reasons the SKY business model may never have worked or no longer meets their needs. I think SKY's push into ISP and by extension IPTV clearly indicates they know that to remain at the top they have to diversify and you have to say with subscribers increasing across the board and churn down a little the business is still very healthy.

    We are well into recession and only time will tell how SKY (and VM for that matter) fare during 2009, the price cut for the SKY+HD hardware, the adjustment for ISP pricing more in like with the market may offset an increase in cancellations and downgrades.

    In terms of business models then a huge question mark hangs over advertising based media concerns, of the big three operations perhaps only Five is comfortable thanks to it's much lower budget and living on lover viewing figures. Ch4 is in a right mess and while ITV profits still support a dividend they to have long term issues with funding and rights costs.
     
  3. Faust

    Faust
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    I think a lot of what you say is correct and I posted this being well aware of Sky's quarterly results. As you say with the recession now beginning to bite hard on jobs whether 2009 will remain healthy for Sky remains to be seen. Certainly for our household at least with only two programmes watched on Sky in the last month and no interest whatsoever in paying for Sky HD then it really is only the £5 per month broadband package that's holding us to Sky at present.
     
  4. Starburst

    Starburst
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    I can understand that reasoning very well, regardless of the price you pay it's the amount of use you get out of it that decides if it's worth the money. A couple of hours at £8 per hour is not great value where as say 60 hours of tv at under a £1 an hour is good value.

    That said there seems to be enough households even in a shrinking economy that consider PAY telly of value perhaps comparing it to a night at the cinema for the family or a footy game (at the pub or even at the ground) or simply prefer a simple monthly payment for an all round service despite DVD rental, torrent/usenet downloading or multi-sat reception.
     

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