(qlmbusinessnews.com via cityam.com – – Wed, 19th Sept 2018) London, Uk – –
UK media giant Sky will bundle Netflix into its subscription for the first time in November in an effort to step up user engagement with its own programming.
The Ultimate on Demand package will give users access to Netflix and Sky Box Sets on its Sky Q platform, making it easier for customers to browse TV selections from both companies.
The plan will cost £10 a month on top of a Sky Q subscription, which is more than the £7.99 Netflix currently charges. However, it will include an additional 350 box sets which would cost £5, therefore saving customers around £2.99 a month.
“We want Sky Q to be the number one destination for TV fans,” said Stephen van Rooyen, Sky chief exec. “Partnering with Netflix means we will have all the best TV in one great value pack, making it even easier for you to watch all of your favourite shows.”
Media firms share a tricky relationship with one another in a crowded market – while Netflix is a considerable threat, Sky recognises the demand for consolidating their entertainment subscriptions. Putting Netflix directly on its Sky Q platform is a shrewd way of adapting to viewer demands while encouraging customers to consume more of its own content.
Sky trying to be a ‘one stop shop'
Paolo Pescatore, a leading media & tech analyst, said the move showed Sky's ambition to become a “one stop shop media provider.
“Sky wants to position itself as an aggregator of services as underlined by recent tie-ups,” he explained. “As important as bringing services together is to be offer users a seamless and integrated service experience.
“Therefore, the move further increases Sky’s own value as a one stop shop provider.”
Comcast, who is competing with Fox to takeover Sky, has also signed its own similar agreement with Netflix. Pescatore added that Sky's move could make it an even more attractive asset for Disney (which is taking over Fox).
“More importantly it will also get access to Netflix’s catalogue and metadata which will prove more attractive to Disney,” he concluded.
Read more: 21st Century Fox extends deadline for Sky to vote on £24.5bn offer
By Josh Mines