Sky Rejigs Pricing To Offer More Customer Choice
BSkyB is attempting to boost subscriber growth with a simplified pricing structure and more customisable channel packages, as well as the addition of broadband and mobile services.
The company hopes to drive profitable subscriber growth towards its target of 10 million customers in 2010 and beyond, with the new pricing coming into effect on 1 September 2005 to coincide with the creation of six genre-based “mixes” of basic channels: Variety; Kids; Knowledge; Style and Culture; Music; and News and Events.
To deliver greater flexibility, the new structure will enable customers to build their own package by selecting any two, any four or all six of the new channel mixes. Customers will pay £15.00 per month for a “2 Mix” pack, £18.00 for a “4 Mix” pack or £21.00 for all six mixes, also known as the “Entertainment Pack”.
In addition to the ‘basic’ channel selections, customers will be able to subscribe to any combination of Sky’s premium channels.
Sky claims the new structure enables a five-fold increase in the number of available package options, giving customers more choice and the ability to tune their package to individual viewing preferences.
The move will boost the number of Sky’s package options to 496 from 96 at present. However, the number of price points for new customers will be streamlined to 15 from the current 96 in order to provide increased simplicity at the point of sale.
Under the new model, the price of the top-tier package, Sky World with Entertainment Pack, will be £42.50 per month, compared to the current price of £41.00 per month. This package is currently taken by around 50% of Sky’s 7.7 million customers.
Sky hopes the new packages will dispel pre-conceptions that its services are an “all or nothing” route to digital TV. The streamlined packages will also allow the broadcaster to more effectively market products and services to segmented groups of potential customers, reinforcing its “What do you want to watch?” campaign, launched last year, with demonstrations that Sky has “something for everyone” (see Sky Targets Digital Refuseniks With Cross-Media Campaign).
Existing customers will be informed of the changed to price and subscription packages this month, with top-tier subscribers given the opportunity to receive video content (see Sky Targets Mobiles In Content Push) on their mobile phone or PC (see Sky To Provide Content Via Internet Downloads) as part of their existing subscription.
Commenting on the pricing change, James Murdoch, chief executive of BSkyB, said: “Enhancing the flexibility and simplicity of the Sky proposition for current customers and future customers is at the centre of what we do. We will broaden the appeal of pay television still further and achieve our goal of bringing great entertainment, choice and tremendous value to customers across the UK and Ireland.”
Earlier this week saw BSkyB sign a deal to become the sole owner of Artsworld, the UK’s only dedicated arts and culture channel, in a move which will make the channel available to the broadcaster’s seven million subscribers from September. The move, designed to broaden the appeal of Sky’s family package, sees Artsworld drop its subscription charges to become part of the wider Sky portfolio (see Sky Scoops Artsworld To Bolster Portfolio).
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