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Feb 07 2008

With the obvious impact freesat might have on Sky’s customer intake, how will Sky respond? freesat is expected to offer not only the range of free channels (which will be available on Sky anyway!) but also the attractive options of a PVR with no charges. At present, Sky’s Sky+ service is FREE, but ONLY if you are an existing subscriber, packaging starting from £16 per month. If you don’t subscribe to Sky, you can get the Sky+ functionality, but at a cost of £10 per month.

You might think its a simple decision of Sky dropping the charge and allowing non-subscription customers use of the Sky+ service, especially considering that more Sky units always means the potential for more Sky subscribers in the future. However, what needs to be taken into account is the fact that Sky have hundreds of thousands of existing subscribers on the minimum £16 per month package. This might be because they enjoy just one range of channels, but most likely because they wish to utilise the Sky+ PVR service, as it simply is amazing technology. The risk to Sky is that dropping the charge might encourage customers to Sky, but at the same time might risk a drop in subscribtion customers deciding they no longer need to subscribe!

There’s been no official word from the Sky camp yet, as they usually do allow time for rival services to launch and monitor how they get on, but unofficial word has it that its been raised but changes won’t happy for a few months, even at all this year.

Tricky predicament ahead we think.

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3 Responses to “How will Sky respond?”

  1. chris L Says:

    they sky will have to drop the prices to remain competitive. sky s biggest worry is revenue what they make on the EPG service to non sky family channels when if expected many leave sky to go to FREESAT

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  2. Steven Says:

    This whole ‘EPG’ thing is bullshit! They tap a few things at Sky and charge £1,000,000 for nothing because of peoples ignorance . . Robbers for sure . .

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  3. Brian Says:

    Without doubt it is a good move to have high definition TV and free satellite service being provided by BBC/ITV as a non-subscription service; but as to the question what effect will this have on Sky, I’d say not a lot.

    What seems to have been missed in all the recent launch of the BBC/ITV service is that Sky have been doing it for years. Yes the BBC is not the first to launch “FreeSat”. Even the name isn’t unique !

    I tried to get Freeview several years ago but the reception was near nonexistent in my area, even though the website said my postcode could receive it. I returned the Freeview box and had FreeSat from Sky installed. Yes free to air channels over a satellite dish. One off payment for installation and receiver and no onward subscription or fee of any kind.

    http://www.freesatfromsky.co.uk/

    The only difference that I can see in the new venture from the BBC/ITV is that it is offering HD content, which isn’t included in the Sky FreeSat offering. Sky has never really advertised their FreeSat offering, perhaps that will be the only change now BBC and ITV are advertising theirs.

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