Originally Posted by aurichie:
“...... If Sky are serious about scaling back the discounts (and Darroch repeated that's Sky's strategy in the last earnings call) then locking in a discount for many years is a shrewd move. People may not even be able to get 10% off next year if Sky really reigns it in. ......”
“...... If Sky are serious about scaling back the discounts (and Darroch repeated that's Sky's strategy in the last earnings call) then locking in a discount for many years is a shrewd move. People may not even be able to get 10% off next year if Sky really reigns it in. ......”
They've talked of it before and didn't make it stick. They've conceded- indeed, cited it as a reason- that it has caused churn (cancellations) to rise; so, there's every reason to predict, in my opinion, that if they reduce discounts much sharper, that they will lose more customers, and increasingly, customers who contribute well to profits despite being on a discount.
People being unable to get 10% off next year, as you suggest could happen, would be an absolute change in policy- abandoning market-share and a proportion of profits, for other principles. BT, I know, would like that to happen, because they've suggested that broadband switching rules be extended to pay-tv, to prevent the larger platforms- Sky & Virgin Media- from pressuring customers to remain with them by saving their largest discounts for people trying to leave/leaving:
http://www.mirror.co.uk/money/best-p...s-only-5939524
https://www.cable.co.uk/news/bt-boss...ges-700001083/
The reality is, that if you don't wish to pay, say, £70 per month for a package including sport and HD, there are compromises available in the market, that offer a broader but smaller range of programming at half the price, than downgrading Sky.
Sky has to decide whether it wants to be one of those options, by discounting (or other means, such as smaller, broader package options), or concede those customers to alternative providers- or even itself, via Now TV.
I'm not surprised that they've been testing customers resolve in the past few months, because with the additional costs of the Premier League contract now to factor in, you would expect them to be considering whether they were giving away revenue by discounting unnecessarily high. It's also the reason, however, that they cannot generate a sharp exodus of customers at this time by dramatically changing their discounting policy.




They might offer you 60% once you cancel.