The cancellation (churn) rates for the last 16 quarters range between 9.5% and 11.2%, per Sky’s published results, so are within a range of 1.7%.
They traditionally peak in Sky’s Quarter 1- July to September- where price increases are a factor, then recover in subsequent quarters.
A modest increase in cancellations (churn) is therefore predictable in Sky’s next quarterly results.
Posters on here sometimes suggest that Sky is “in for a major fall” or the opposite- that Sky is so dominant that customers cancelling or downgrading their subscriptions have barely no impact on Sky. However, reality is nearer the centre, in my view- that customers who cancel or downgrade tv subscriptions affect the level of profits.
That may appear like stating the obvious until you consider the business model-
as one analyst- Bank of America Merrill Lynch (BoAML)- explained it last year, the largely fixed cost base of Sky’s pay-tv model means that most of Sky's profits come from the last 20% of its subscriber base.
Thus, it explains in part, why Sky go to significant lengths to retain/win back customers who attempt/proceed to cancel. Also, why Sky analyse/monitor Movies & Sports subscriptions very closely, as these are high-value customers who, despite competition in the pay-tv market, Sky should be best placed to satisfy through their lead in content.
I'd not be surprised Sky seeing a net increase in customers this next year .......
Although we'll be guessing from other data whether they're traditional Sky TV subscribers, as Sky don't separate them from Now TV subscrbers, who currently pay from £4.99 for a one month commitment, to be counted as a subscriber.
Regardless of billing date, any charges that relate to 1/9/14 or later will be charged at the new prices.
If a customer chooses to downgrade/cancel, then 31 days notice applies. Thus, to avoid being charged the higher price for any part of the notice period, notice would have to be given in the next few days, in order to downgrade/end the subscription in late August.
Looks like my misunderstanding, thanks for the info and apologies to Rook.
Called to cancel and was offered 50% straight away and reduced line rental all for 12 months. Guess if I had haggled might have got more but from our point of view it brings us to a price I'm happy to pay again for the next year. My only question is now I have accepted this will I have any chance of another deal in 12 months or is that all I will get for a few years.
Called to cancel and was offered 50% straight away and reduced line rental all for 12 months. Guess if I had haggled might have got more but from our point of view it brings us to a price I'm happy to pay again for the next year. My only question is now I have accepted this will I have any chance of another deal in 12 months or is that all I will get for a few years.
I had half price Sports and Movies from last September to March. I eventually downgraded back to the variety mix in May. With the September price rise I downgraded again to the original mix in July. A week later I checked online and I have another 6 months half price Sports and Movies...... However as I'll only watch Sports and / or Movies in HD Sky will also have to offer me a HD discount too otherwise they can stick it. I'll pay the equivalent of £4 per HD Liverpool football match and £4 per HD movie (that I want to watch) and if the cost over 6 months works out more then I'll leave it.
I'd not be surprised Sky seeing a net increase in customers this next year given the economy's back in the groove.
The economy might be recovering but it's going to be a few years before Joe Public feels any better about it. I had my first above inflation pay rise back in April, admittedly it was only 0.7% above inflation but it beats the total 2% increase I had over the whole of the previous 7 years.
Was thinking of taking up a 6 months half price Sky Sports and Movies offer however as I only take Movies and Sports in HD I tried (and failed) haggling for half price HD sub. After a very protracted Sky Chat session it has finally dawned on me that instead of reducing the HD sub, Sky have actually increased it by asking an extra £5 to watch Movies / Sports in HD. They are taking the pi$$! I will swallow my pride and take the half price Sports and Movies without the HD (I'm not paying an extra £17 / month to watch a handful of football matches and movies a month in HD) for the first time ever and bin Sky completely in the New Year.
Was thinking of taking up a 6 months half price Sky Sports and Movies offer however as I only take Movies and Sports in HD I tried (and failed) haggling for half price HD sub. After a very protracted Sky Chat session it has finally dawned on me that instead of reducing the HD sub, Sky have actually increased it by asking an extra £5 to watch Movies / Sports in HD. They are taking the pi$$! I will swallow my pride and take the half price Sports and Movies without the HD (I'm not paying an extra £17 / month to watch a handful of football matches and movies a month in HD) for the first time ever and bin Sky completely in the New Year.
Do you mean you took Family some time ago when you removed movies and sports switching from the £10.25 HD pack to save an extra £5.25 per month?
OMG, and now when you are going back to movies and sports you need to pay the £5.25 extra to get them in HD?
If it was only ~£17 extra to get them in HD with your offer, it sounds like you were getting 2 discounts. So 6 months half price movies and sports is £16.50 (instead of £33) and then the premium HD pack for £1 (instead of £5.25 per month) so despite a £4 rise in this package cost you would be paying the same as last year.
Do you mean you took Family some time ago when you removed movies and sports switching from the £10.25 HD pack to save an extra £5.25 per month?
OMG, and now when you are going back to movies and sports you need to pay the £5.25 extra to get them in HD?
If it was only ~£17 extra to get them in HD with your offer, it sounds like you were getting 2 discounts. So 6 months half price movies and sports is £16.50 (instead of £33) and then the premium HD pack for £1 (instead of £5.25 per month) so despite a £4 rise in this package cost you would be paying the same as last year.
I don't see what is so unfair about this?
I've recently just downgraded (prompted by the September rise) from the variety to the original mix at £21.50 a month. This was a no brainer as we watch very little on the additional channels. I haven't had Movies, Sports or HD since my previous discount ended around Easter. According to the 'My Sky' offers webpage I have the opportunity to take a 6 months half price Sports and Movies offer, which should be an extra £20.50 a month. However when I enquired about watching them in HD I was told I would have to upgrade to the family pack (which include HD as standard at an extra £11.50 a month) and then take the Movies and Sports HD pack (at £5.50 per month). Hence to watch Movies and Sports in HD it's an extra £17 / month compared to £10 a month 12 months ago. Given that HD was introduced as a premium service 8 years ago, this is why I'm saying that Sky are taking the pi$$!
Although I was a bit miffed with the increase from sky
My second home has BT broadband and that increase looks much worse, so I think its welcome back Sky there
BT broadband is so unreliable and customer support is just atrocious, once you get hold of them, which is never easy and their youview box is a poor substitute for the sky box
Comments
They traditionally peak in Sky’s Quarter 1- July to September- where price increases are a factor, then recover in subsequent quarters.
A modest increase in cancellations (churn) is therefore predictable in Sky’s next quarterly results.
Posters on here sometimes suggest that Sky is “in for a major fall” or the opposite- that Sky is so dominant that customers cancelling or downgrading their subscriptions have barely no impact on Sky. However, reality is nearer the centre, in my view- that customers who cancel or downgrade tv subscriptions affect the level of profits.
That may appear like stating the obvious until you consider the business model-
as one analyst- Bank of America Merrill Lynch (BoAML)- explained it last year, the largely fixed cost base of Sky’s pay-tv model means that most of Sky's profits come from the last 20% of its subscriber base.
Thus, it explains in part, why Sky go to significant lengths to retain/win back customers who attempt/proceed to cancel. Also, why Sky analyse/monitor Movies & Sports subscriptions very closely, as these are high-value customers who, despite competition in the pay-tv market, Sky should be best placed to satisfy through their lead in content.
Although we'll be guessing from other data whether they're traditional Sky TV subscribers, as Sky don't separate them from Now TV subscrbers, who currently pay from £4.99 for a one month commitment, to be counted as a subscriber.
Looks like my misunderstanding, thanks for the info and apologies to Rook.
I had half price Sports and Movies from last September to March. I eventually downgraded back to the variety mix in May. With the September price rise I downgraded again to the original mix in July. A week later I checked online and I have another 6 months half price Sports and Movies...... However as I'll only watch Sports and / or Movies in HD Sky will also have to offer me a HD discount too otherwise they can stick it. I'll pay the equivalent of £4 per HD Liverpool football match and £4 per HD movie (that I want to watch) and if the cost over 6 months works out more then I'll leave it.
The economy might be recovering but it's going to be a few years before Joe Public feels any better about it. I had my first above inflation pay rise back in April, admittedly it was only 0.7% above inflation but it beats the total 2% increase I had over the whole of the previous 7 years.
Do you mean you took Family some time ago when you removed movies and sports switching from the £10.25 HD pack to save an extra £5.25 per month?
OMG, and now when you are going back to movies and sports you need to pay the £5.25 extra to get them in HD?
If it was only ~£17 extra to get them in HD with your offer, it sounds like you were getting 2 discounts. So 6 months half price movies and sports is £16.50 (instead of £33) and then the premium HD pack for £1 (instead of £5.25 per month) so despite a £4 rise in this package cost you would be paying the same as last year.
I don't see what is so unfair about this?
I've recently just downgraded (prompted by the September rise) from the variety to the original mix at £21.50 a month. This was a no brainer as we watch very little on the additional channels. I haven't had Movies, Sports or HD since my previous discount ended around Easter. According to the 'My Sky' offers webpage I have the opportunity to take a 6 months half price Sports and Movies offer, which should be an extra £20.50 a month. However when I enquired about watching them in HD I was told I would have to upgrade to the family pack (which include HD as standard at an extra £11.50 a month) and then take the Movies and Sports HD pack (at £5.50 per month). Hence to watch Movies and Sports in HD it's an extra £17 / month compared to £10 a month 12 months ago. Given that HD was introduced as a premium service 8 years ago, this is why I'm saying that Sky are taking the pi$$!
My second home has BT broadband and that increase looks much worse, so I think its welcome back Sky there
BT broadband is so unreliable and customer support is just atrocious, once you get hold of them, which is never easy and their youview box is a poor substitute for the sky box