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    Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

    This is a discussion on Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike within the Sky news and announcements forums, part of the SkyUser Announcements category; Originally Posted by dms05 Like everyone else I've now had the Sky letter increasing my subscription by 3.50 per month ...

    1. #61
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      Quote Originally Posted by dms05 View Post
      Like everyone else I've now had the Sky letter increasing my subscription by 3.50 per month (so it's now well over 1k/year).

      Can I afford it? The answer is yes. However more importantly 'Will I afford it and the answer is NO.

      The letter from Sky is an insult and the wording is carefully chosen to annoy me as much as possible. If Sky wish to compete with BT by spending ever increasing outrageous sums on PL/CL football they should recover their costs by better efficiency and better deals - however they simply think they can pass all the costs onto the customer.

      So I hope someone from Sky notes that this customer is about to say NO and if I'm dropping one service I might as well drop them all. I'm free of any constraints within the next couple of weeks and I shall begin looking around for BB and Telephone suppliers (which might include Sky).

      However after years of debating about Sky TV I'm going to cancel that completely and go the Freesat/Freeview route. Now that should worry Sky because I'm going to drop completely out of the PayTV market. As Sky know from experience keeping an existing customer is way easier than finding a new customer.

      If I was a cynic I'd say Sky are thrashing the prices this year so they can do something dramatic next year when they loose Champions League football for several seasons. However a time always comes when you have to say 'that's enough' and my letter dated 7 July 2014 is that watershed.

      I've just looked at Humax Freesat PVR boxes and aren't they cheap! I can be completely re-equipped and be free of Sky charge equivalents by early autumn.

      Goodbye Sky.
      I Love This Idea !! (Now Thinking ? )


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    3. #62
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      This is the post that got me thinking...
      And still am thinking.

      Quote Originally Posted by reddwarfcrew View Post
      Interesting chat with sky exec office today. I was asking about what package was most relevant to my viewing needs and comparing to now tv. Specifically why movies on now tv is half the price of mainstream sky. Bottom line is via sky the best they can do is 54.75 which is just the standard price for the relevant packages for me compared to 15 if I get the same on now tv. They advised me to go to now tv and leave mainstream sky. As I'm on fibre there isn't any impact on my fibre charge. My only challenge is can I live with[out] HD content.

    4. #63
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      I thought more about the subject and decided to look at BB/Line Rental charges. Sky are charging me 28/month or 336/year - for exactly the same package elsewhere I can pay 12 months up front and get it all for 162. So I save 170 in the first year which buys me a Humax twin HD tuner Freesat model with 1 TB HDD. Sky TV is costing me 56/month or 672/year and I will save every single penny of that. So the nett balance Year 1 is +672. In year 2 it becomes +850.

      I call Sky and press the various menu options only to be told (paraphrasing) that they can't possibly process my request at 08.15 because all their operatives are still in bed and the office opens later in the day.

      So when I call them again their CS Rep has a very hard time. I'll pay you 162/year and not a penny more. Your choice Sky.

      ...Later.....I managed to contact the relevant department and cancelled my Sky TV completely. I talked to them about BB/Line Rental and the best they could do was 22.90/month (276/year) compared to the best elsewhere of 162/year paid upfront. So I'm about to switch BB provider and order a Freesat PVR. Sky have just lost 1,050/year of subscription value which is 1,050 straight from their bottom line profit as all their costs will remain the same.
      Last edited by dms05; 10-07-14 at 09:25 AM.
      dog-man likes this.

    5. #64
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      If the sentiment expressed in this thread is widespread then Sky is going to see its customer churn soar to even higher levels. They'll no doubt try and plug the gap with even better offers for new customers* and heavy retention discounts for leaving customers**.

      I guess they are banking on the vast majority of customers just swallowing the increased costs. No doubt the city analysts are going to be looking hard at ARPU and churn figures through this year.

      In my view Sky's pricing model is broken and probably not sustainable now there are alternatives. You are forced to buy bundles which include channels you have no interest in and rightly or wrongly, non sport customers feel they are subsidising those who have sports. Sports customers who have it for the football feel ripped off as they have to pay yet more to BT if they want full coverage. Then there's extra for HD and extra for Multiscreen, with the charges for both being very high. To cap it all, if you want to go Freesat using your Sky box, the box you have bought, either outright on the open market or through your subscription, is crippled unless you pay Sky every month for the privilege of being able to record on it. Not sure how they get away with that one.



      * Give a new customer a heavy discount and not only are you taking a revenue and profit hit (and you further annoy existing customers) but you are setting yourself up for repeating it at renewal or losing them to a competitor, as who is happy at their bill doubling all of a sudden?
      ** Heavy retention discounts when given in time to prevent leaving just encourage existing customer to take on the mindset of a new customer (see above). If given too late i.e. the customer has invested in freeview/freesat and made the emotional commitment to move elsewhere, then the offer won't be taken up.

    6. #65
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      It was interesting when I called to cancel. The CSR concentrated on what excellent value Sky is with all the new programming they are sponsoring. He also concentrated on the Sports 5 channel claiming it was new footie and trying to persuade me the Spanish La Liga was 'new' when Sky have carried it for years.

      I explained that whilst Sky may be spending big money on new programming I'd never heard of I objected to Sky charging me more to cover costs of programmes I wasn't interested in.

      He couldn't answer the point of going to BT and receiving Sport without the need to pay for a Basic Package that was nothing more than a tax on Sky Sports viewers.

      In the end he couldn't offer me anything other than the basic price Sky charge existing customers. No attempt to offer any discount on anything. I was left with the impression Sky really didn't care if I left so I'm unlikely to return after such disinterest.

      Using the calculations in my previous post I realised by keeping well clear of Sky I stand to save about 4,300 over the next 5 years. What worries me now was the fact I'd been prepared to spend that money and I really must thank Sky for the wake up letter that made me closely examine what I was getting for 5,250 over the next 5 years. The answer was nowhere near enough.
      dog-man and totalwar like this.

    7. #66
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      Quote Originally Posted by Saturday View Post
      If the sentiment expressed in this thread is widespread then Sky is going to see its customer churn soar to even higher levels. They'll no doubt try and plug the gap with even better offers for new customers* and heavy retention discounts for leaving customers**.

      I guess they are banking on the vast majority of customers just swallowing the increased costs. No doubt the city analysts are going to be looking hard at ARPU and churn figures through this year.

      In my view Sky's pricing model is broken and probably not sustainable now there are alternatives. You are forced to buy bundles which include channels you have no interest in and rightly or wrongly, non sport customers feel they are subsidising those who have sports. Sports customers who have it for the football feel ripped off as they have to pay yet more to BT if they want full coverage. Then there's extra for HD and extra for Multiscreen, with the charges for both being very high. To cap it all, if you want to go Freesat using your Sky box, the box you have bought, either outright on the open market or through your subscription, is crippled unless you pay Sky every month for the privilege of being able to record on it. Not sure how they get away with that one.



      * Give a new customer a heavy discount and not only are you taking a revenue and profit hit (and you further annoy existing customers) but you are setting yourself up for repeating it at renewal or losing them to a competitor, as who is happy at their bill doubling all of a sudden?
      ** Heavy retention discounts when given in time to prevent leaving just encourage existing customer to take on the mindset of a new customer (see above). If given too late i.e. the customer has invested in freeview/freesat and made the emotional commitment to move elsewhere, then the offer won't be taken up.

      Well said Saturday, I agree with you and apart from all the extras they charge that you mention, there is also a massive amount of repeats on all channels. Yet they still want to charge you more, to pay for all deals they give new customers I suspect. I have had a number of discussions with sky about loyalty to there long standing customers, but mainly it fall on deaf ears. I am starting to think about getting a freesat box and will be checking out what programs that I watch, that I will loose on freesat.

      Mickr

    8. #67
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      Quote Originally Posted by dms05 View Post
      If Sky wish to compete with BT by spending ever increasing outrageous sums on PL/CL football they should recover their costs by better efficiency and better deals - however they simply think they can pass all the costs onto the customer.
      Couldn't agree more. I left Sky two years ago because their charges were no longer value for money. I have my own price point, 20 per month, for which I want some extra TV channels to FreeSat, and in High Definition at no extra charge, plus the ability to watch in one extra room.

      Instead I get FreeSat with all the basic channels in HD in as many rooms as I want, including the ability to record, at no monthly charge.

      I tried NowTV, but have cancelled that too as the 8/m for a mediocre selection of movies was poor quality.

    9. #68
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      I love my freesat/freetime box, it has all the catch-up services on it too, and I love the showcase feature. I miss maybe 4 channels that I used to watch on Sky but Freetime is an excellent replacement. Oddly Sky did me a good phone/broadband deal so I stayed with them for one more year, but I'm guessing that will end as their normal prices are too expensive in comparison to others.

    10. #69
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      It looks like we will also be ditching sky tv, although we are only on the legacy variety and hd package, an additional 2 per month is a bit steep ! 36.75 is the tipping point when the only exclusive content we watch is the F1, which I admit we will miss but not for long!
      So, wifey has been looking at alternatives, vutv, now tv and I've seen the humax pvrs mentioned on here - would anyone be kind enough to offer me the pro's and con's of what's available?

    11. #70
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      Re: Sky Broadband UK Warns of Forthcoming TV Bundle Price Hike

      I'm on the same lagacy package as you jayhab - variety with separate HD pack.

      Current price (disregarding 5.13 half price HD discount) is 33.75 here.
      My letter states it's only going up by 1.

     

     
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