Sky, Virgin & BT TV Haggle down prices and get serious discounts Article Discussion

[Deleted User]

Captain89 wrote: »

Its pretty crazy how big of a discount sky can afford to give and still make a profit.

The profits come from those paying the full price, those on discounted deals just keep subscriber numbers up.

Captain89

Moneyineptitude wrote: »

The profits come from those paying the full price, those on discounted deals just keep subscriber numbers up.

I understand those playing full give them a higher margin for profit but surely they wouldn't wanna pad their numbers if it means they lose money doing so at this stage of their business?

bubblegun

marco806 wrote: »

my golfing buddy has already been offered and turned down 60 per cent and a 50 quid credit.

sky switched off a few weeks ago, he has been pestered non-stop.

he is holding out for 75 per cent off.

He'll be waiting a looooong time, that offer ended a few months ago.

60% is the most they were offering recently and I hear that's dropping to 50%.

When new customers are being signed up on 10%, 20% and 25% discounts they don't see a need to keep the winback offers so high.

Captain89 wrote: »

I understand those playing full give them a higher margin for profit but surely they wouldn't wanna pad their numbers if it means they lose money doing so at this stage of their business?

It was noted by "analysts" in the recent financial results that ARPU growth was slowing which will be due to the levels of discounting in the business in the last few years and the numbers switching to NowTV instead of basic tv packages.

Captain89

bubblegun wrote: »

He'll be waiting a looooong time, that offer ended a few months ago.

60% is the most they were offering recently and I hear that's dropping to 50%.

When new customers are being signed up on 10%, 20% and 25% discounts they don't see a need to keep the winback offers so high.



It was noted by "analysts" in the recent financial results that ARPU growth was slowing which will be due to the levels of discounting in the business in the last few years and the numbers switching to NowTV instead of basic tv packages.

This is true but since they include subscribers of Now TV in their figures the ARPU was bound to take a hit. That being said I'm just doing basic math here. If the cost of you providing a service is zero then getting someone to pay anything for that service = profit for you. (I know its slightly more complicated than that but you get my point).

I'm sure at some point sky will try to get the discounts at lower levels but with them losing CL football next season, Card sharing becoming more popular, BT sport and other options to watch TV they can't really afford to let too many customers walk away right now.

hawkwind

Our service ended friday night although i have actually removed my sky box a week ago and replaced it with freesat.
My two daughters have been visiting this weekend and after having a play with the freesat box they too are now going to cancel Sky.
They have looked at what i have watched and recorded in that week and realised that there is a lot of excellent free television that they are missing out on.
Goodbye Sky

scottiv

Called up Sky today to cancel the TV part of my package, as a current deal (from moving over from O2 last year) was coming to an end meaning my package would shoot up in price to about £60/month. Best the guy could offer was to say I could drop my TV package down to the Variety bundle, or cancel and wait for an offer. He then passed me onto another 'more experienced' adviser who went on to offer me the TV for 50% off at £14/month for a year, and dropped my broadband price down to £5/month from an already discounted price for the duration of my broadband contract. Was pretty pleased to say the least as I didn't expect 50% off, let alone a drop in my broadband without asking!

[Deleted User]

Captain89 wrote: »

I'm just doing basic math here. If the cost of you providing a service is zero then getting someone to pay anything for that service = profit for you.

Factor in the £billions paid to the Premiere League and to Hollywood etc and you'll soon realise that the cost of providing Sky Tv is not "zero" at all.

What percentage of subscribers do you suppose actually has a retention discount? Not that many, I'd wager, although forums like this certainly add to people's awareness that such deals are offered.

pen1

Moneyineptitude wrote: »

Factor in the £billions paid to the Premiere League and to Hollywood etc and you'll soon realise that the cost of providing Sky Tv is not "zero" at all. ......

I think the point that is being made, is that the majority of Sky's costs in respect of their pay-tv business are "fixed"- e.g in the course of the contract, they will pay the same amount to the Premier League, irrespective of whether they sell Sky Sports to 6 million customers or 7 million.

Thus, if 6 million customers willingly pay the full rate, it nevertheless adds to the profitability of the business if they then sell at a discount to additional customers; and all the better if they are departing/ ex-customers who already have equipment in place, because as opposed to acquiring new customers, it doesn't entail the same level of acquisition/marketing costs.

As Captain89 indicated, it's more complicated than that. Analysts have queried discount levels in the past and the gist, I believe, which is also consistent with good business sense, is that bringing in additional pay-tv customers even on significant discounts, is profitable to Sky because of the business model.

mnc

marco806 wrote: »

you need to cancel, i got offered 35 per cent off (Politely turned down) before i cancelled.

bear in mind, if you cancel and in the unlikely event , you do not get a better offer, you are only a phone call away from being re-connected instantly.

hold your nerve and you will get 50 per cent off and a new box.

btw, i cancelled online, got a phone call the next day with the 35 per cent offer.

After my service was cut off I was offered the 50% off tv but they absolutely would not budge on getting a new box for free. I declined the offer as our basic box is old and was starting to get issues. I've not heard anything from sky since so will be buying a Humax box soon.

Captain89

pen1 wrote: »

I think the point that is being made, is that the majority of Sky's costs in respect of their pay-tv business are "fixed"- e.g in the course of the contract, they will pay the same amount to the Premier League, irrespective of whether they sell Sky Sports to 6 million customers or 7 million.

Thus, if 6 million customers willingly pay the full rate, it nevertheless adds to the profitability of the business if they then sell at a discount to additional customers; and all the better if they are departing/ ex-customers who already have equipment in place, because as opposed to acquiring new customers, it doesn't entail the same level of acquisition/marketing costs.

As Captain89 indicated, it's more complicated than that. Analysts have queried discount levels in the past and the gist, I believe, which is also consistent with good business sense, is that bringing in additional pay-tv customers even on significant discounts, is profitable to Sky because of the business model.

Pretty much this. Thanks for explaining my point better.