SKT - Sky Network Television

[mistaTea]

NEON/SSN...

Yeah, just our biggest growth area and all...

How many last profiles do you have now anyway? I'm losing track.

[CharlieMunger]

Yeah, just our biggest growth area and all...

Yeah bro, it's growing as fast as Sky Broadband

[mistaTea]

Yeah, just our biggest growth area and all...

Yeah bro, it's growing as fast as Sky Broadband

Ok, Broadband is a different story.

I am sure any numbers they release in August will be underwhelming.

Unclear why they aren't offering it with streaming services by now.

I suspect we have 10K - 15K broadband customers.

[CharlieMunger]

I suspect we have 10K - 15K broadband customers.

It will be barely that many.

The worst part is that the growth rate would have stalled.

They never advertising on TV anymore.

Won't be long until they pull the pin and write off $20m in costs.

They'll partner up with 2Degrees/Vocus after they combine their other brands.

Sky Broadband is dead bro, just like Spark Sport.

[CharlieMunger]

By partner up I mean Sky broadband will just be renamed 2Degres broadband.

[mistaTea]

I suspect we have 10K - 15K broadband customers.

It will be barely that many.

The worst part is that the growth rate would have stalled.

They never advertising on TV anymore.

Won't be long until they pull the pin and write off $20m in costs.

They'll partner up with 2Degrees/Vocus after they combine their other brands.

Sky Broadband is dead bro, just like Spark Sport.

It's all a moot point because 2D will buy Sky.

[CharlieMunger]

It's all a moot point because 2D will buy Sky.

You mean a bunch of old hedge fund guys might buy it.

Could happen.

But it will be a lame merger. Just like when Voucs bought 2degrees. Look what happened to Trilogy stock, it  barely moved!

Wouldn't hold your breath on a 2Degrees bail out. MIRA will be prepping it for a float.

[mistaTea]

It's all a moot point because 2D will buy Sky.

You mean a bunch of old hedge fund guys might buy it.

Could happen.

But it will be a lame merger. Just like when Voucs bought 2degrees. Look what happened to Trilogy stock, it  barely moved!

Wouldn't hold your breath on a 2Degrees bail out. MIRA will be prepping it for a float.

Not holding my breath. I imagine they are very busy right now working on the merging of 2D-VocusNZ operations.

While they do that I assume they will just expand their wholesale arrangements for Sky streaming services.

If they do go for Sky, they have to feel that owning Sky outright generates sufficient value in excess of just having wholesale deals for Sky's content. By just having wholesale deals (for now anyway) it will also allow 2D to guage how popular the bundles actually are.

I have wanted a tie up with Vocus/2D for some time now as I think it would make a very good business (and a legit challanger to Spark). But, right now...if a buyer was interested then most likely PE, I agree.

[CharlieMunger]

You're over playing the bundles bro.

Most Sky satellite customers are on Spark mobile and have already bundled their broadband with it.

2Degrees always had the younger demographic and the poor people who couldn't afford the post pay plans. They're not Sky customers.

You're asking customers to drop their existing Spark mobile bundle and then change to 2degrees. But these older folk know that 2 Degrees are the donkey provider. That's why they won't move.

Ironically, the best place for Sky satellite customers is with Spark, not 2Degrees. A JV with Sky/2degrees would only benefit a small number of Neon/SPN customers, who are younger and are already on 2Degrees but as well know, these folk are poor and young.

[mistaTea]

You're over playing the bundles bro.

Most Sky satellite customers are on Spark mobile and have already bundled their broadband with it.

2Degrees always had the younger demographic and the poor people who couldn't afford the post pay plans. They're not Sky customers.

You're asking customers to drop their existing Spark mobile bundle and then change to 2degrees. But these older folk know that 2 Degrees are the donkey provider. That's why they won't move.

Ironically, the best place for Sky satellite customers is with Spark, not 2Degrees. A JV with Sky/2degrees would only benefit a small number of Neon/SPN customers, who are younger and are already on 2Degrees but as well know, these folk are poor and young.

I am just saying that 2D is much more likely to be able to poach some Spark and Voda customers if they are a 2D/Sky JV versus 2D on its own.

[CharlieMunger]

I am just saying that 2D is much more likely to be able to poach some Spark and Voda customers if they are a 2D/Sky JV versus 2D on its own.

Bro, it's hard to move a baby boomer who's been with "Telecom" since 1997.

Anyway, everyone knows bundles are already factored into the price. There's bundles everywhere!

A 2d/Sky tie up won't steal many customers away from Spark.

2d are going after Gen Z.

The telco plan is weak, other than reducing costs.

[Mysterion]

I am just saying that 2D is much more likely to be able to poach some Spark and Voda customers if they are a 2D/Sky JV versus 2D on its own.

Even a 2d, Sky, NZME, MW arrangement would struggle to poach any customers but a mega arrangement like this would strip out a lot of costs.

Problem is that it would be too complicated as everyone would try and out value each other. Could you imagine trying to put a deal like this together!

[Cod]

240 at entry today, looks like the recent plunge on the world markets and the mediaworks debacle has got rid of a few of the nervous nellies on the register, but its a bit like riding a bronco at the Alabama state fair.

[CharlieMunger]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKT/394428/373581.pdf

[PeterLynch]

I'd be concerned that Osmium Partners have started to sell.

You can't tell by the disclosure but it seems likely that all those sales are recently.

Likely lost faith in management after the last fiasco or maybe they don't see this as a value stock after the run up to $3.

Their monthly newsletters usually give the answer.