Originally Posted by Virtual Paul:
“There does seem to be a lot of promos around, always something going on. Seen today on another site that the mail newspaper has a promo for a free sports day pass. There's been similar free passes with Carling and Pringles.
I'm sure NowTV is cannibalising Sky's premium satellite sales but they must think it's worth doing. I am expecting them to bump up the prices once sufficient numbers have moved over, or charge extra for HD and other add-ons like they do on their satellite offerings.”
Sky is being smart and playing the game well with Now TV by keeping the following in mind:
* If cable and Satellite TV subscribers in the US are anything to go by, Sky better start moving people towards VOD (e.g. Now TV) soon. Cable TV in America is haemorrhaging at the moment due to years of inflated prices, forced bundling and longterm contracts. People are leaving in droves for cord cutting services like Netflix, Prime and Hulu. Sky sees this and is doing something rather cool which the Americans don't really have yet... Now TV. (Well, they have Sling TV over there which is similar but not quite the same).
* As mentioned above. VOD services like Netflix and Prime are the future, along with catch-up TV. If Sky want to stay prominent, this is what they must compete against, and Netflix doesn't force people into longterm contracts, it doesn't force bundles and it is very cost effective.
Now TV doesn't force contracts, bundles and is cost effective. If they increased the prices, people will leave again.