New Zealand Sky TV subscribers down 8,707 in 2H 2014

New Zealand Sky Television (NZX: SKT) has reported results for the six months to 31 December 2014.

John Fellet Chief Executive Officer said:

“MY SKY subscribers now represent 64.2% of SKY’s satellite subscriber base compared to 58.6% in the comparative period. At 31 December 2014, SKY had 529,001 MY SKY subscribers compared to 486,252 in December 2013, an increase of 8.8%. Subscribers continue to find great value in the MY SKY product which is demonstrated by continued migration from the standard digital decoder to the MY SKY decoder.

A disappointing aspect of the six month result was the net loss of 8,707 subscribers.

We have already launched several new business models that exploit both the internet and Video On Demand. We have launched IGLOO a hybrid model delivering content via the internet and Digital Terrestrial Transmission (DTT). We have also just launched NEON an internet delivered Subscription Video On Demand model and FAN PASS which is a single sport, single season subscription model delivered via the internet.

We are now working on our greatest innovation and challenge of all. Our next goal is to download to all MY SKY decoders a software upgrade which will allow every MY SKY decoder to connect to the internet allowing access to content in either the traditional linear format or an On Demand basis. We will also be rolling out MY SKY boxes to all our digital subscribers to enable them to take advantage of these new products and services.”

On 30 October 2014 SKY carried out a major technology upgrade to its broadcast head end, thereby laying the foundation for exciting future service upgrades. This will enable MY SKY boxes to have the ability to connect to the internet through the existing ethernet port with an ethernet cable or a WiFi device.

At its AGM in October 2014, SKY announced it was launching a brand new Subscription Video On Demand (SVOD) service called NEON. NEON will offer exclusive TV series, hundreds of movies, great factual entertainment, documentaries and brilliant family viewing. Customers will get the first 30 days for free and then it’s just $20 every month thereafter, with no long-term contracts and no ads.

Subscriber Base

                        31 Dec 2014  30 Jun 2014  31 Dec 2013
                        -----------  -----------  -----------
Total subscribers           856,348      865,055      857,115
 Residential                696,211      715,058      684,841
 Wholesale (1)              119,196      111,390      135,399
 Commercial                   9,153        9,060        8,401
 Other (2)                   31,788       29,547       28,474

MY SKY Subscribers (3)      529,001      504,713      486,252

1. Includes subscribers receiving SKY packages via affiliate services, such as arrangements with Spark (formerly Telecom) and Vodafone.
2. Includes subscribers to programmed music and online DVD rentals via SKY’s subsidiary companies, SKY DMX Music Limited and Screen Enterprises Limited. Also includes residential subscribers to IGLOO’s package launched in December 2012.
3. Included in total subscribers.