Tech
Sky considers free Sky+ strategy
Published Wednesday, Aug 17 2005, 11:21 BST | By Neil Wilkes
Sky is mulling a plan to offer Sky+ free to all new and existing customers, according to a report in The Independent.
The move, which could cost the company as much as £1 billion over the next three years, is seen as a way of increasing subscriber numbers further towards the 10 million target set for 2010.
The Sky+ service currently costs £99 for the PVR set-top box and, depending on the package taken, a subscription of £10 per month.
"Getting to 10 million homes is more difficult when cable becomes more of a competitive threat," industry analyst Paul Richards told the newspaper. "Sky+ is a superb product. Giving it away would cut the churn rate and be a big plus for adding new customers."
He added: "Having 10 million Sky+ homes [in 2010] is obviously more valuable than 3 million with Sky+. It is a case of short-term pain for long-term gain."
The move, which could cost the company as much as £1 billion over the next three years, is seen as a way of increasing subscriber numbers further towards the 10 million target set for 2010.
The Sky+ service currently costs £99 for the PVR set-top box and, depending on the package taken, a subscription of £10 per month.
"Getting to 10 million homes is more difficult when cable becomes more of a competitive threat," industry analyst Paul Richards told the newspaper. "Sky+ is a superb product. Giving it away would cut the churn rate and be a big plus for adding new customers."
He added: "Having 10 million Sky+ homes [in 2010] is obviously more valuable than 3 million with Sky+. It is a case of short-term pain for long-term gain."
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