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Thread: Sky's new TV strategy?

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    Default Sky's new TV strategy?

    Casually flicking through the UPC channels, as you do, I noticed that a number of Sky's premium stations, such as Sky Sports 1 and a number of film channels, were now freely watchable as part of the basic UPC package. If the company now appear to be giving up for nothing what used to be considered prime incentives for subscribing to the service, does this indicate they now view TV as a "loss leader", and are now concentrating on online and on-demand services?
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    Politics.ie Member Aindriu's Avatar
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    They are certainly running scared of losing their customer base. I told them to stuff their 'service' on a Friday and had someone call me on the Monday begging me to return! I then received a customer survey on the Tuesday. Oh boy did they get a slagging in that
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    It's likely to be an encryption mistake, and will be blocked later.

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    Quote Originally Posted by FloatingVoterTralee View Post
    Casually flicking through the UPC channels, as you do, I noticed that a number of Sky's premium stations, such as Sky Sports 1 and a number of film channels, were now freely watchable as part of the basic UPC package. If the company now appear to be giving up for nothing what used to be considered prime incentives for subscribing to the service, does this indicate they now view TV as a "loss leader", and are now concentrating on online and on-demand services?
    Hmm.

    Not sure why they would do that for UPC distribution.

    They would have their direct customer base dumping them in droves.

    Alternative more logical explanations would include a technical glitch, an account glitch or maybe a temporary marketing taster.

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    Politics.ie Member Astral Peaks's Avatar
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    Quote Originally Posted by FloatingVoterTralee View Post
    Casually flicking through the UPC channels, as you do, I noticed that a number of Sky's premium stations, such as Sky Sports 1 and a number of film channels, were now freely watchable as part of the basic UPC package. If the company now appear to be giving up for nothing what used to be considered prime incentives for subscribing to the service, does this indicate they now view TV as a "loss leader", and are now concentrating on online and on-demand services?
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    It is classic Sky strategy. It concentrates on its real premium channels and then uses the others as loss leaders or for switch and bait. In the early 1990s, Sky Movies used to be free (unencrypted) and this was part of a battle between Sky and British Satellite Broadcasting (a bunch of people who thought they were the satellite TV equivalent of the BBC since they won the UK's Direct To Home satellite TV franchise). The sports were also the major attraction since the movie channels were three to six months behind the video and DVD releases. UPC is a major player in the Irish market and its on-demand movies service might be making a slight impact. But in a recession, there is always a cutback on Pay-TV by subscribers and while Sky really didn't have major competition here in the 1990s (apart from the pirate satellite tv smartcards that provided Sky and European channels), UPCs market presence has changed things. It would be funny if it was a glitch in UPC's conditional access system but Sky used to run encryption free weekends to try to attract new customers.
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  7. #7
    Dylan2010
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    Quote Originally Posted by jmcc View Post
    It is classic Sky strategy. It concentrates on its real premium channels and then uses the others as loss leaders or for switch and bait. In the early 1990s, Sky Movies used to be free (unencrypted) and this was part of a battle between Sky and British Satellite Broadcasting (a bunch of people who thought they were the satellite TV equivalent of the BBC since they won the UK's Direct To Home satellite TV franchise). The sports were also the major attraction since the movie channels were three to six months behind the video and DVD releases. UPC is a major player in the Irish market and its on-demand movies service might be making a slight impact. But in a recession, there is always a cutback on Pay-TV by subscribers and while Sky really didn't have major competition here in the 1990s (apart from the pirate satellite tv smartcards that provided Sky and European channels), UPCs market presence has changed things. It would be funny if it was a glitch in UPC's conditional access system but Sky used to run encryption free weekends to try to attract new customers.
    the UPC pay per view is 6€ which seems very expensive, why the same cost as a video store?, we use it maybe once every couple of months for the kids but otherwise its cheaper just to download them off the net.

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    Quote Originally Posted by Dylan2010 View Post
    the UPC pay per view is 6€ which seems very expensive, why the same cost as a video store?, we use it maybe once every couple of months for the kids but otherwise its cheaper just to download them off the net.
    The theory behind UPC's PPV is that the viewer doesn't have to go to the video store - they can just watch them and there's no DVD to drop back to the video store. The timing is a bit off as viewing habits (downloading movies off the net) have changed. Still though, if enough subscribers use PPV every few months it makes money for UPC.
    Regards...jmcc

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    Dylan2010
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    Quote Originally Posted by jmcc View Post
    The theory behind UPC's PPV is that the viewer doesn't have to go to the video store - they can just watch them and there's no DVD to drop back to the video store. The timing is a bit off as viewing habits (downloading movies off the net) have changed. Still though, if enough subscribers use PPV every few months it makes money for UPC.
    its just I view it as being too expensive, if an online book costs the same as a printed book I feel I am being ripped off. Likewise with UPC, they need to show me that they are at least splitting the difference of the distribution overhead of a DVD store. They will be forced into a price war at some stage as more people are hooking their TV's directly to the net.

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    Quote Originally Posted by Dylan2010 View Post
    its just I view it as being too expensive, if an online book costs the same as a printed book I feel I am being ripped off. Likewise with UPC, they need to show me that they are at least splitting the difference of the distribution overhead of a DVD store. They will be forced into a price war at some stage as more people are hooking their TV's directly to the net.
    The most important element of price wars is not starting one when there's no chance of winning and only a few operators in the market. Now is not really the time for price wars and it is even more imporant to choose one's enemies carefully.
    Regards...jmcc

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