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    Sky to start net TV war with push into Spain

    This is a discussion on Sky to start net TV war with push into Spain within the Sky news and announcements forums, part of the SkyUser Announcements category; Sky to start net TV war with push into Spain Sky is secretly preparing a major expansion of its European ...

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      Scubbie's Avatar
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      Sky to start net TV war with push into Spain

      Sky to start net TV war with push into Spain

      Sky is secretly preparing a major expansion of its European empire by launching its online streaming service Now TV in Spain as the first stage of a plan to challenge Netflix and Amazon across the continent.

      For more than a year, a team at the pay-TV giant have been laying the groundwork for its first move into territories where it has no satellite operation, The Sunday Telegraph can reveal.

      If the launch is a success, it is understood that Sky will then target other untapped European territories for Now TV expansion.

      Now TV is expected to be offered to Spanish households for €10 per month, positioning Sky alongside Netflix as a low-cost way for consumers to boost their entertainment options.

      Amazon is also preparing to enter the Spanish market this year by launching its Instant Video service.

      Spain is seen as attractive to subscription streaming providers in part because a relatively low proportion of households currently subscribe to traditional pay-TV. According to official figures, only 27pc of Spanish homes have pay-TV, compared with nearly two thirds of British households.

      The Spanish market has been expanding quickly, however, boosted by the roll-out of ultrafast broadband networks. On-demand viewing has increased by nearly a quarter in the last two years.

      A third of Spaniards who do not have pay-TV cite the cost of subscribing to a traditional operator as the main barrier, providing a further draw for Now TV. The traditional market is dominated by Telefonica, Vodafone and Orange, which bundle pay-TV with broadband services.

      For Sky the move is a crucial test of whether Now TV can succeed in a country where it does not have a satellite operation. The company is already attempting to push into streaming and the lower end of the pay-TV market in German and Italy, where it also offers traditional, more expensive services.

      Sky is seeking more sources of growth as its core UK satellite business is no longer adding significant numbers of new households and has stretched the willingness of subscribers to accept price rises in the face of cheaper options such as BT TV.

      Over the long term, satellite TV is expected to go into decline as the internet becomes the main means of distributing programmes.

      As well as investing in building a bigger streaming empire, Sky is gearing up for the launch of its UK mobile network, based on a deal with O2.

      Launching Now TV in Spain means Sky could steal a march on Europe’s second largest pay-TV operator, Vivendi of France, which had intended to “build strong positions in Southern Europe, a market that shares a similar Latin culture and roots”.

      The keystone of the plan was to be its acquisition of the Italian pay-TV operator Mediaset Premium, which also sells its programming in Spain via streaming. However, that takeover fell apart in a dispute over the valuation of Mediaset with the Berlusconi family, who control its current parent company.

      Vivendi has said it still has “different options” to realise its pan-European vision, in comments likely to trigger speculation about its intentions towards Sky.

      Sky declined to comment.

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      Re: Sky to start net TV war with push into Spain

      Shame cannot find pricing online.

      Its 9.99 for sky cinema (but not other movie content from other movie channels?)
      I assume as a skybb customer I would get ssome form of discount. But dont know as they want me to ring.
      Also with the scrapping of the fibre pro package I assume if I tried to add sky now they would force me to change broadband package.

      Netflix is great but has had to start making its own content as I noticed movies are vanishing from it on a monthly basis, presumably because competitors like sky pay more and demand exclusivity.

      Also is it fully on demand or stuck to a lame schedule?

     

     

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