Cutting the cord: Sky are fostering their own downfall

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Last week we discussed a Bloomberg article on the increasing availability of premium quality, pirated, broadcast content, made possible by set-top boxes.  In short, products are available to make any amount of premium sports or movie content available to users without subscription, with little the law can do about it.

Quite apart from pirate viewing, subscription broadcast numbers are under pressure from legal streaming services, such as Amazon Instant Video and Netflix, a drift known as Cutting the Cord.  A survey published this week reports that 8.2% of US broadcast subscribers ditched their service in 2014 in favour of streaming.  More significantly, 45.2% of US subscribers report they cut back on content they paid their broadcast supplier for.

UK satellite and cable TV subscribers pay some of the top prices in the world for sports and other premium content.  A dysfunctional market has emerged due to the controlling position of two players:

BSkyB, who dominate subscription TV supply in the UK
The FA Premier League, who own the key content for the UK market

Within this market there are winners and losers.  The winners are English and Welsh football clubs who earn enormous revenues from the FA Premier League TV deal, and subsequent trickle-down monies.  The losers are UK subscribers, who paid a fortune to keep the BskyB-FA Premier League contract in funds, and, of course, Scottish football clubs, who are excluded from the England and Wales league system.

Scotland is 8% of BskyB’s business, significant enough to make a dent in its revenues, but more importantly, if a US-style drift from expensive subscriptions is fostered in Scotland, it will move south soon enough.

I’ve been looking into this since we discussed it last week and will report back.

Shocked and stunned to read in the Daily Mail that Dave King met Sports Direct on the morning of his club’s EGM, as reported by Phil MacGiollaBhain a week ago.  That will explain the lack of denial, I suppose.  The interesting question is: Who gave the Daily Mail the story?  Dave King, or through his PR company?

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583 Comments

  1. glendalystonsils on

    ‘Gers swoop for Allan and Wilson to deliver double whammy to Old Firm rivals’

     

     

    Reacting to this latest body blow, Celtic CEO Peter Lawwell admitted, ‘we tried our best to get these deals over the line but we just couldn’t offer the lure of the Petrofac cup’

  2. WeefratheTim on

    Ok ghuys feeding time and then we can dine. As a wee aside, no one will dictate to me how I spend my money. I worked for 52 years and saved a bit in pension funds. I enjoy my sky programmes, if somebody has issues with that, drop by and we can discuss it. Lol. (Kidding of course.)

     

     

    Weefra HH praying to Wee Oscar.

  3. embramike says “the huns are deid”

     

     

    19:57 on 24 June, 2015

     

    I get BT Sports free with my broadband so will get the European games as Sky lost the contract to BT this season.

     

     

     

    ………….

     

     

    That offer is only for a year.

  4. Interestingly I spoke to two mates today. One a man u fan. One a non sports type. Both sky subscribers. Both looking at cheaper better alternatives. I’ve already done walking away from Sky.

     

     

    The man u guy has got a device for watching fitba for free. Non football guy is going down Netflix and cheaper digital provider routes.

     

     

    The non football chap asked the same question we have been asking – where is the value? What is sky’s game plan?

     

     

    It seems to me to be too big to change tack. It’s lumbering toward EPL induced suicide.

     

     

    10 years with Sky. Thousands of pounds. I should have given it to Celtic.

  5. Tomorrow is 25th anniversary of big David O’Leary’s penalty. Irish football’s zenith moment. It’s one of those ‘where were you…’ moments. Behind the goals for me , what a party in Genoa square that night!

     

     

  6. embramike says "the Huns are Deid" on

    googybhoy ♥ celtic @ 20:17

     

     

    I get BT Sport free as long as I have BT Broadband. Been with them 2 years.

  7. WeefratheTim on

    brnobhoy

     

     

    How the devil are you keeping? Haven’t seen you in yonks. I hope the wee mhan, who is probably not that wee noo, is well. A more handsome bhoy you would struggle to find. Hope you’re well “M”. :-)))))

     

     

    Weefra HH praying to Wee Oscar.

  8. Given up on Sky and will be getting an Android Box for the start of the season.

     

     

    £100 already set up with British channels.

     

    Movie channels. big fights new series from US.

     

     

    Nothing illegal.

  9. embramike says “the huns are deid”

     

     

    20:23 on 24 June, 2015

     

    googybhoy ♥ celtic @ 20:17

     

     

    I get BT Sport free as long as I have BT Broadband. Been with them 2 years.

     

     

     

    ……….,

     

     

    Need to check why they are charging more now.

  10. googybhoy ♥ celtic

     

     

    embramike

     

     

    If you have the full BT Infinity pack (with sports) – costs you zilch for the CL games providing you agree to following:

     

     

    1) Renew your contract for 18 months = £0.00

     

    2) Do so before *31/07/15.

     

     

    * covers you till completion of CL Group Stages December 2016-17.

     

     

    H!H!

  11. I understand BT Sport will add another channel for the Champions League and it will be at a surcharge. I have binned Sky but will miss the Spanish football more than the EPL. I hear the BT surcharge will be £5.99 per month for Champions League.

  12. glendalystonsils

     

    20:15 on

     

    24 June, 2015

     

    ‘Gers swoop for Allan and Wilson to deliver double whammy to Old Firm rivals’

     

     

    Reacting to this latest body blow, Celtic CEO Peter Lawwell admitted, ‘we tried our best to get these deals over the line but we just couldn’t offer the lure of the Petrofac cup’

     

     

    Would the prospect of THEM making these stupendous signings be the reason that Petrofac shares are on the up?

  13. praecepta

     

     

     

    I stand corrected , I was referring to a prole like me on the Virgin XL package, if you switch you will get a deal it would appear.

  14. Hi weefra

     

     

    Family doing well, just back from Portugal with them, wee man getting bigger , will need to pop around and see you soon.

     

     

    Cheers

     

    Brnobhoy

  15. lennon's passion on

    I’ve had sky sports for 2 year free of charge if you don’t know how it works you are living in the dark ages.

  16. N.B. – don’t renew too early! i.e. before circa mid-July – otherwise you could miss the 5/6th CL Group Stages December 2017.

     

     

    This important message was brought to you in the voice of………………..

     

     

    Morgan Freeman CSC!

  17. Don’t see anyone challenging Gene’s accurate assertion that fraud, is fraud is fraud.

  18. I’ve now learned that I am living in the dark ages.

     

     

    CQN – always an education ;-)

  19. What is the Stars on

    Quonno/ gene

     

    Defrauding sky?

     

    What about the argument that the” expropriaters must be expropriated”

  20. BBC Headline,

     

    Celtic and Rangers inquire about Scott Allan

     

     

    Hibernian manager Alan Stubbs insists no bids have been made for Scott Allan despite reports linking the midfielder with both Celtic and Rangers.

     

    While Celtic insist they have made no approach for the 23-year-old, it is believed that the Ibrox club have made a tentative enquiry.

     

    “There are no bids that I know of,” Stubbs told Sky Sports News.

     

     

    Just how Celtic come into this ,only the BBC know.

  21. I had been with BT on broadband package giving free sports, this needs renewing annually, which I thought I had done online

     

    I then got over £90 extra taken from my account, as when I renewed the annual deal on-line I missed a tick box in the small print

     

    BT ( a UK advisor) advised me on how to get this back through the bank ( a total fluke I got contact with a UK advisor)

     

    BT customer advice in India ? Informed me it would take 3 months to get my money back, as I would be credited in my next bill,

     

    I lost the will with BT and cancelled the entire package

     

    It has taken 9months to settle my bill with BT, (and I will not return to them) as next 2 bills were in-correct with additional full use charges, even though account was closed, and 15 recorded calls to BT customer services and accounts, all India ? ( no disrespect but they struggle with the accent from me ?)

     

     

    Lesson, be very careful if renewing annual deal online, my deal went from free, to £27.99 for one part and £5.99 for another

     

     

    Now – I do get BT Sports on the android box if required

     

     

    Hail Hail

  22. Boyata ex- Man city, Belgium international or Wilson ex- hearts ???

     

     

    I think we made the right choice HH

  23. No time for Murdoch either and I have never had Sky.

     

    Still, I have gone to pubs to watch matches that are only on there.

     

    Heck – I’ve met friends for drinks in bars that have Sky even when there’s no major sport on. You still pay a few extra pennies for the landlords subscription.

     

    Plus, I have read the Times in an airport lounge or whatever. A fraction of my flight must pay for the free newspapers. And then there’s the advertising. ..

  24. Mahe the Madman on

    Quonno,,my post was in answer to his,,just didn’t name him. Fraud is illegal. Those boxes and the use of them are not, hence amazon etc selling them. Hail Hail

  25. praecepta

     

     

    20:43 on 24 June, 2015

     

    N.B. – don’t renew too early! i.e. before circa mid-July – otherwise you could miss the 5/6th CL Group Stages December 2017.

     

     

    This important message was brought to you in the voice of………………..

     

     

    Morgan Freeman CSC!

     

     

    ———-

     

     

    You’re a lot like a peely wally – but just as cool – version of young Morgan with your poster Bhoy looks and resonant timbre.

     

     

    CoolioDudiosCSC

     

     

    HH jamesgang

  26. Always willing to learn….android boxes , vpn’s, gonna need a bigger brain. I in a previous life knew a few people who had a good few years out of the old analogue system, some kind of coded cards? That , I understood…this all looks more complicated, but am willing to learn.

  27. jamesgang

     

     

    Just wait till the sun breaks out in the West (Indies) End of Glasgow………

     

     

    someday soon! :-(

  28. Irishcol: I was in a pub in Rush, North County Dublin, where I lived at the time. My wife and three year old lasted the 90 minutes but the pub was so packed she couldn’t hack it any longer. It’s funny because I remember Packie’s save more readily than O Leary’s penalty. Great times.

  29. lennon's passion on

    hun skelper

     

     

    20:55 on 24 June, 2015

     

     

    My bhoy is a big Liverpool fan informed me Wilson was brutal down there.Maybe went down to young but No 1 son thinks he’s absolutely murder. BIG Derek is a beast of a man lets hope he can play aswell.

  30. People relying on android box streams who are used to sky may be very disappointed. When you get a good stream it is class. When you don’t it is frustrated. Can freeze regular. Poor picture. No sound or foreign commentary. Missed goals. Missed kick off and all sorts. I use it and can handle it but if you are used to HD quality, pause, rewind and all the mod cons you are in for a shock. He interested to see Paul’s take once he is hunting around for a link for the game and missing the KO.

     

     

    LB

  31. jmmccormick

     

     

    For what it is worth, I read last week that BT were setting up two additional sports channels on Freeview. Twelve CL and 14 EL games would be shown during the season, the finals would also be shown on Freeview. Now, I am hoping that BT have enough nous to show at least one Celtic game, if we make the group stages, probably from Glasgow. Could be useful as a marketing exercise, by way of comparison of relative audiences. Smart move.

  32. Paddy Gallagher on

    Sir Daid Murrays newspaper ‘The Sunday Scot’ will be the death of Sky, once it catches on!

  33. quonno

     

     

    My original post was in response to someone who said they wouldn’t get rid of sky cos they wanted to watch the Celtic games.

     

     

    That was why I said you can subscribe to Celtic TV, get an ISP blocker, and see the games without giving sky your money, Celtic get another paying customer, they are not losing out as many people don’t go to the games.

     

     

    It’s not fraud, it’s cheeky seeing the games a few hours earlier, that’s all.

     

     

    Tho given the chance, I wouldn’t bat an eyelid at scamming sky :-)

     

     

    HH