Good feeling having a double bagger (well almost) …..and maybe soon a triple bagger
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The SKY thread theme tune has gone from "Tragedy" to "Good Vibrations" in just three days!
Seriously, great news all round and congrats to those, including Ogg, who stayed the course and reaped the rewards. Tempting to get out whilst the going is good, but I'll stick around, as continued buying is indicative that most people and insets think there's more good news coming.
And although the Sky board haven't made life easy over the years - and could have done a much better job in managing the transition - they do seem to have turned the corner and, begrudgingly, I have to give them credit for that. Just don't stuff it up or we'll bring back Ogg to haunt you!
https://www.nzx.com/announcements/384426
VTV 'retransmission' subs to be classified as STB customers after they are migrated to Sky.
So we will actually see a drop in retrospective ARPU for both streaming and STB (though total revenue unchanged).
Moving forward though, we will get more revenue from each sub as we no longer have to pay Vodafone a commission.
Good for Sky...and the removal of VTV helps further cement Sky's proposition of being the preferred platform to use for content aggregation needs.
Plus there will be other OPEX costs Sky elimintate from their systems from having to support the feed to the VTV box etc.
Vodafone must also rate the new Sky STB if they have decided to pull the pin now.
Clearly their service was struggling, and the new Sky product would have been the final nail in the coffin I think.
The other thing for us all to ponder...
With Vodafone making the call to get out of their loss making service...so that they can focus their energy and resources on core telco competencies...
Will Spark follow suit before long?
Clearly Spark Sport has not become the overwhelming success they thought it would...they have low subscriber numbers, customers aren't particularly pleased having cricket rights split between two subscriptions etc.
And we see the telcos battling it out in the 5G space, which requires an enormous amount of time and investment.
So, could Vodafone getting out of Pay TV be a precursor to Spark doing the same thing?
That alone would launch the Sky SP God knows how high.
If this scenario were to present, this is what Sky would need to assess.
If they can get the rights to the cricket, EPL etc for a bargain...is it worth just absorbing those costs into the existing Sport package price to eliminate a competitor?
Or perhaps they lift their sports sub at the same time. They have hinted in the past that they have not raised the sport package price for a while, so maybe sport rises to $35/month.
Cricket fans etc still better off because right now the cheapest way to stream all cricket is $49.99/month to get the SS/SSN bundle deal.
I think they would role nz cricket into the main sport bundle, but other rights might be worth splitting into a new niche extra sport package, or maybe going the “non-exclusive” route to some degree.
Poor Ogg - Sky is just headquartered in the wrong country!
https://www.nzherald.co.nz/business/...RQGOVCOWZ6MTM/