Sky TV has announced that it is raising funds from investors in order to enter the broadband market next year.
Sky TV chief executive Martin Stewart said in a strategy update, that they will initially target their existing customers.
"Launching next year, Sky will first offer Sky Broadband to its customers as an opportunity to reward customer loyalty. Sky will then focus on the hundreds of thousands of New Zealand homes that are fibre ready through the Ultra-Fast Broadband scheme but not yet connected."
Broadly speaking, a new large player like Sky in the market place will be good news for all broadband customers – with more competition and more choice for everyone.
Stewart said, “We want to provide the best possible sport and entertainment experience to New Zealanders, and a high-quality, high-speed broadband service built specifically for entertainment helps us do that," he said.
“Broadband will be a superb addition to our offering because it enables us to reward our customers with greater value whilst opening opportunities for growth.”
When speaking with Stuff, he said Sky would aim to offer faster speeds, lower prices and better service.
When it launches it seems likely that Sky could use broadband as a loss-leader to bring more people onto its pay-TV or streaming plans. This could mean competitive broadband deals for customers bundled with entertainment and sports packages.
Sky TV announced that it expects to launch their broadband service in 2021, but it is still early days. At this point they are working to raise $157 million needed through an offer to their shareholders and investors. We’ll keep you updated on further developments.
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