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Sky price increases
Looks like we're in for price increases:
http://media.guardian.co.uk/broadcas...512490,00.html Sky pins hopes on flexible package BSkyB yesterday raised prices by an average of 5% and offered customers more choice and flexibility to try to reach its target of 10 million subscribers by 2010. The new pricing structure comes as the satellite television company faces increased competition from Freeview and cable for basic subscribers. The changes offer a greater selection of basic channels as well as broadband and mobile services for higher paying subscribers. They form part of chief executive James Murdoch's strategy of emphasising Sky's appeal to a broad range of subscribers. One executive at a rival firm said yesterday: "They want to overcome the perception that Sky is about paying £40 a month for sports and movies." A BSkyB spokesman said: "Rather than one-size-fits-all, it's more of an à la carte range of choices. Sky is not just about sports and movies but about a whole range of entertainment options." From September Sky is to introduce six genre-based "mixes" of basic channels under the headings variety, kids, knowledge, style and culture, music, news and events. Subscribers can then select any two, four or all six. In doing so, Sky has raised the entry level from £13.50 to £15 a month for two basic mixes and £21.50 a month for all six, a 7.7% increase on the £19.50 monthly charge for its "Family Value pack". Although more expensive than rivals, Sky hopes customers will be attracted to the pick 'n' mix nature of the changes. The inclusion of arts channel Artsworld and enhanced parental control features in its basic packages are designed to drive growth. The price of Sky's top-tier package, which includes pre mium sports and movie channels and is taken by half its 7.7 million subscribers, is to increase by 4% to £42.50 a month. Analysts welcomed the changes yesterday after greeting the new strategy with a mixed response last August. BSkyB's shares rose 8p to 521p yesterday, but they have fallen 13% in the past 10 months amid fears that margins will suffer in the drive for volume. In a note to investors yesterday, Mike Hilton, analyst at investment bank UBS, wrote that the price increases would help Sky maintain its margins and arpu, the average revenue it receives per subscriber, over the next 12 months in spite of other discounts. "The pricing structure will also discourage basic subscribers from spinning down to cheaper packages since the savings to be made are modest." Rival executives believe Mr Murdoch and his father, the BSkyB chairman Rupert Murdoch, are both keen to attract basic-rate subscribers in order to hit the 10 million target. However, cheap packages could have the adverse effect of encouraging existing subscribers to give up their premium channels. Several analysts believe this has stopped Sky advertising its Freesat offering, where customers pay about £150 for the satellite box and a basic service with no monthly charge. One rival executive said: "If they were really going after Freeview they would be offering £10-a-month packages." Sky is on course to meet its target of eight million subscribers by the end of this year. In a statement, Mr Murdoch said: "Enhancing the flexibility and simplicity of the Sky proposition for current customers and future customers is at the centre of what we do. We will broaden the appeal of pay television still further." |
Bob wrote:
: Looks like we're in for price increases: Enclosed with the Sky Magazine today!! Has anyone found a list of the channels which are in the 6 new groupings yet???? |
"Brian McIlwrath" wrote in message ... Bob wrote: : Looks like we're in for price increases: Enclosed with the Sky Magazine today!! Has anyone found a list of the channels which are in the 6 new groupings yet???? Its on the last page of this press release http://tinyurl.co.uk/4du1 |
"Mike Henry" wrote in message ... In , "gav425" wrote: "Brian McIlwrath" wrote in message ... Bob wrote: : Looks like we're in for price increases: Enclosed with the Sky Magazine today!! Has anyone found a list of the channels which are in the 6 new groupings yet???? Its on the last page of this press release http://tinyurl.co.uk/4du1 Thankyou VERY much for posting that! For me I can save £1.50 by switching from the so-called "Family" pack (at last that name dies!) to the "4 mix" pack, dumping "Kids" and Music. In all the other chances I've had both with Sky and cable before that, they have always managed to put at least 1 channel I wanted in each option so I was never able to dump anything. I'll have just the Variety and Music packs, when I drop the Movies as well (which I'm doing tomorrow), I'll save £10.00 per month (I've got Sky+ so I'll be paying £25 instead of £35 as I do now) |
In uk.media.tv.sky on Thu, 23 Jun 2005, Brian McIlwrath wrote :
Bob wrote: : Looks like we're in for price increases: Enclosed with the Sky Magazine today!! Damn - now I'll have to dig around in the dustbin... :) -- Paul 'US Sitcom Fan' Hyett |
Brian Wescombe wrote:
"Mike Henry" wrote in message ... [=2E..] For me I can save =A31.50 by switching from the so-called "Family" pack (at last that name dies!) to the "4 mix" pack, dumping "Kids" and Music. In all the other chances I've had both with Sky and cable before that, they have always managed to put at least 1 channel I wanted in each option so I was never able to dump anything. I'll have just the Variety and Music packs, when I drop the Movies as well (which I'm doing tomorrow), I'll save =A310.00 per month (I've got Sky+ so I'll be paying =A325 instead of =A335 as I do now) I *only* want Sky Sports 1,2 & 3. I was paying them =A333 p/m, in the latest magazine they say I will now have to pay =A336 p/m!! And they imply this is somehow better value than before!!! Is there any way I can reduce the cost by dropping some of the other channels? The press release is totally confusing IMO. |
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A BSkyB spokesman said: "Rather than one-size-fits-all, it's more of an à la carte range of choices. Sky is not just about sports and movies but about a whole range of entertainment options." Isn't that just how it used to be before they decided to get rid of the choice? I recall when Sky digital first started there was a huge grid with about 90 different combinations of options. Is this Sky actually admitting they were wrong or is it just a mask to put the price up. I predict a Jan 2007 press release "Sky simplifies packages - all customers to pay £60 and they get Disney Channel+1 free" |
JohnW wrote:
: Isn't that just how it used to be before they decided to get rid of the : choice? I recall when Sky digital first started there was a huge grid with : about 90 different combinations of options. Is this Sky actually admitting : they were wrong or is it just a mask to put the price up. You are correct that Sky did indeed have a "huge grid" but there was very little real choice in it! They did have some half-hearted channel groupings less than the "Family Package" (or whatever it was called) but the channel selection was such as to make almost everybody take the FP (the huge grid was just all the almost useless options x n Premium channels). What is now *NEW* is that the channel "mixes" actually *DO* look to be sufficiently good as to make taking less than the full 6 of them very viable for many people! |
"Brian McIlwrath" .......
What is now *NEW* is that the channel "mixes" actually *DO* look to be sufficiently good as to make taking less than the full 6 of them very viable for many people! Shame you can't just have sports... STILL. Plus if you have movies and/or sports, removing all redundant 4 mix packs saves you a massive £2. Whoopee doo. Especially when the prices have gone up an average of £2. |
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