SKT - Sky Network Television

[mistaTea]

And SKY subscribers leaving droves

They can't leave mate, haven't you been paying attention?

Sky have a great new retention strategy...when customers call to cancel their subscription, Sky just...DON'T ANSWER THE PHONE!

If the bastards turn up to the office...SKY JUST SIC THE COPS ON THEM!!!

It is absolutely brilliant - I just wish they thought of it sooner.

[Crackity]

You guys are so busy talking rubbish  you are missing the big news.....


Sky confirms advanced discussions underway with World Rugby
In response to media speculation, Sky Network Television (Sky, NZX/ASX: SKT) confirms that it is in advanced discussions with World Rugby to negotiate a wide-ranging rights deal that would secure World Rugby's premium competitions (including Rugby World Cups) for our customers over multiple years. The discussions include potential changes for RugbyPass, which would support World Rugby's strategy to engage fans and grow the global game. It would be inappropriate to comment on the details until the terms of a binding agreement are finalised.

[mistaTea]

You guys are so busy talking rubbish  you are missing the big news.....


Sky confirms advanced discussions underway with World Rugby
In response to media speculation, Sky Network Television (Sky, NZX/ASX: SKT) confirms that it is in advanced discussions with World Rugby to negotiate a wide-ranging rights deal that would secure World Rugby's premium competitions (including Rugby World Cups) for our customers over multiple years. The discussions include potential changes for RugbyPass, which would support World Rugby's strategy to engage fans and grow the global game. It would be inappropriate to comment on the details until the terms of a binding agreement are finalised.

It is an interesting development.

Looks like they are on the cusp of singing a multi year deal that goes well beyond RWC.

And we get to offload RUGBYPASS!

[Mysterion]

You guys are so busy talking rubbish  you are missing the big news.....

Sky confirms advanced discussions underway with World Rugby
In response to media speculation, Sky Network Television (Sky, NZX/ASX: SKT) confirms that it is in advanced discussions with World Rugby

"Big news"



The news originates here buddy!

The journos lurk and steal the content.


"response to media speculation"

That's how Sky start every announcement now!




Say good bye to Rugby Pass, good riddance!

What a waste of US$40 million - just lol


Good news: Sky is securing content and dominating Spark Sport.

Bad news: These content deals continue to get more and more expensive and rampant inflation and increase costs is hurting the bottom line.


Another price hike coming soon with more satellite churn likely.

One step forward, two steps back.

Slow death continues.

Takeover still the main theme but clock continues to tick.

[Plata]

Figured I'd have a look into the past to see how sky fared in the last recession. Admittedly this was before streaming really existed so not sure how valid the comparison is, quite interesting though. Looking at GFC impacted results and covid/lockdown impacted results gives me some comfort that a sudden drop in subscribers in the next few months might not be too likely. What motivates cancellations more I wonder? Alternatives (covid/lockdown + now), fear of job loss (covid/lockdown + GFC) or cost of living (now).
You cannot view this attachment.

[Mysterion]

OK peps...

I'm calling no cash back!!

It will be a dividend and a buy back program to be announced 25th August.

You read it here first.

[Mysterion]

Figured I'd have a look into the past to see how sky fared in the last recession. Admittedly this was before streaming really existed so not sure how valid the comparison is, quite interesting though. Looking at GFC impacted results and covid/lockdown impacted results gives me some comfort that a sudden drop in subscribers in the next few months might not be too likely. What motivates cancellations more I wonder? Alternatives (covid/lockdown + now), fear of job loss (covid/lockdown + GFC) or cost of living (now).
You cannot view this attachment.

Nice graph bro but that was during the launch of My Sky HDi

Numbers likely skewed.

[Plata]

Good news: Sky is securing content and dominating Spark Sport.

Bad news: These content deals continue to get more and more expensive and rampant inflation and increase costs is hurting the bottom line.[/size][/b]

We have no idea what the price they intend to pay is and automatically assuming it is higher than the last time because of general inflation is incorrect imo. I imagine the expected performance of the national team plays into the price sky is willing to offer and word on the street is NZ ain't even gonna make it to the semi's. And lets face it, spark and discovery paying big money for the rights is a big risk on their part given they don't have that many sports customers. They would basically be following "if you build it, they will come" as a strategy which is not very smart.

Sky has way more sports customers and is in a much safer position to pay for these rights, I reckon we will come to find the spark discovery bid was well below sky's budget.

[Mysterion]

We have no idea what the price they intend to pay is and automatically assuming it is higher than the last time because of general inflation is incorrect imo. I imagine the expected performance of the national team plays into the price sky is willing to offer and word on the street is NZ ain't even gonna make it to the semi's. And lets face it, spark and discovery paying big money for the rights is a big risk on their part given they don't have that many sports customers. They would basically be following "if you build it, they will come" as a strategy which is not very smart.

Sky has way more sports customers and is in a much safer position to pay for these rights, I reckon we will come to find the spark discovery bid was well below sky's budget.

Bro, content costs are only going one way that's UP UP UP UP UP

• "Binding sheet"
• Deal involves Rugbypass?
• Media speculation

This all points to $$$$$
The performance of the all blacks would have nothing to do with it. They only lost the series on Saturday, this deal would have been going on for months. All Blacks lost a few games but are still popular - come on.

Although WarnerDiscovery have money to burn they don't have their own pay platform in NZ so by partnering with Spark their bid was limited. Spark over bid on the last rights, that's why the won, this time round they likely bid nothing and all the money came from WarnerDiscovery. That's why they lost.

WarnerDiscovery are still sorting out their recent merger but expect next time they will be serious bidders.

But back to your point, it's likely that Sky paid more for the rights than Spark did last time. That's just to do with increase costs, not over bidding.

Having said that as Sky have thrown in Rugbypass it seems like it's not all about money, like when they gave away equity to NZRU. Seems like WorldRugby wanted Rugbypass or something or they've added in a sweetener some how. Bottom line is that it still cost $$$$.

On the balance sheet it will just show Rugbypass is gone, which we all know it has anyway, but it's like paying USD $40m for the rights.

[Plata]

Having said that as Sky have thrown in Rugbypass it seems like it's not all about money, like when they gave away equity to NZRU. Seems like WorldRugby wanted Rugbypass or something or they've added in a sweetener some how. Bottom line is that it still cost $$$$.

On the balance sheet it will just show Rugbypass is gone, which we all know it has anyway, but it's like paying USD $40m for the rights.

If rugby pass is not commercially viable (is it?), but sky can effectively sell it for $40 million USD - isn't that a good thing? One less stupid side project to distract management, steal software engineer development time and add to the workload of the apparently flailing customer service team. As for next time, there might not even be a next time for spark sport. What does spark sport even have left at this point? the cricket? Only takes a quick google search to see what cricket fans think of spark sport   

How many people will sign up to a new discovery service just to watch the world cup? I still reckon sky can get more people to pay for it than discovery can, and especially with spark sport out of the picture.

[Mysterion]

If rugby pass is not commercially viable (is it?), but sky can effectively sell it for $40 million USD - isn't that a good thing? One less stupid side project to distract management, steal software engineer development time and add to the workload of the apparently flailing customer service team. As for next time, there might not even be a next time for spark sport. What does spark sport even have left at this point? the cricket? Only takes a quick google search to see what cricket fans think of spark sport   

How many people will sign up to a new discovery service just to watch the world cup? I still reckon sky can get more people to pay for it than discovery can, and especially with spark sport out of the picture.

It's a good thing that rugby pass is gone but it's another thing that sky has to give up. Just like with their building and OSB. It's short term gain for long term problems.

Spark Sport is gone, the risk now shifts to WarnerDiscovery.

It makes more sense that WarnerDiscovery buys Sky than competes with them. It's just a question of when. However, if they leave it too long then the satellite customers become less valuable but maybe Sky can generate enough earnings from them in the meantime. But as an investor why wait and take the risk?

Best outcome is WarnerDiscovery buys Sky now and then they can put in decent bids for all sports. Then Amazon and other companies might enter the NZ market. This will be better for NZRU/WorldRugby because they will likely get more revenue and that will help promote the game etc. It's economics 101, acquire, consolidate, invest, grow. Don't do the opposite, which is what sky is doing now, aka rip of customers and try and get dividends for investors.

[Mysterion]

"Sold at breakeven"

Yeah what ever say buddy!



MT has crossed over to the dark side.

He knows the takeover is the only viable option for shareholders and could likely net $3.50 per share today.

Just lol if you believe in the "turn around" strategy management keeps shilling.

[mistaTea]

"Sold at breakeven"

Yeah what ever say buddy!



MT has crossed over to the dark side.

He knows the takeover is the only viable option for shareholders and could likely net $3.50 per share today.

Just lol if you believe in the "turn around" strategy management keeps shilling.

Yes Baa Baa is very crook with me at the moment.

Give him time. It will eventually dawn on him that a lot is a wrong with sky right now - our sheik chairman is just one of many issues.

Takeover would be best for everyone - but it won't happen.

The board and management won't let it happen because they are milking sky for what she is worth.

[Mysterion]

https://www.geekzone.co.nz/forums.asp?forumid=106&topicid=293960&page_no=11

The geeks...

Sky won't have any decent supply of the new box until next year.

Just a rebranded google box anyway

[Mysterion]

https://www.nzherald.co.nz/business/sky-tv-says-its-in-advanced-talks-to-take-back-the-rugby-world-cup/RQ4HHDXHZJLHGMUBKDDQNVMDBA/

Keall suggesting that Silverlake are wanting RugbyPass to fulfil their contractual obligation.

They probably are prepared to invest more capital to help RugbyPass grow long term anyway. Sky under pressure to return to profitability.