Sky News Update: Sky Offers Broadband Deal to Rival BT’s
Sky News Update: Sky have launched a broadband and tv deal to keep them in the running with rivals BT to offer the best broadband and sports TV coverage.
In a direct retaliation to BT’s offer, Sky have initiated a scheme wherein customers receive free unlimited broadband when they sign up to Sky Sports. The television package which offers coverage of all the major sporting events is usually charged at £42.50 per month. New and existing customers will be offered free unlimited broadband with only the charge of the £14.50 line rental needing paying. This offers customers the chance to save £60 over the year.
This is an inverted offer of BT’s which is aimed to promote their new sports channel which is free to customers already subscribed to BT broadband. Sky are also offering discounted broadband to customers if they are currently subscribed to Sky TV but not Sky Sports. This offer is the basic line rental plus just £3.75 per month.
For customers who are not subscribed to any form of Sky TV there is a basic charge of £19.50 per month for the unlimited broadband package. This is advertised as £5 per month with the additional line rental of £14.50.
The additional offer of Sky’s version of superfast broadband – Sky Fibre Unlimited – is offered for free for the first six months and then a flat rate of £20 per month afterwards, if they sign up to Sky Sports TV. Those who are not Sky TV customers can get Sky Fibre Unlimited for half price for the first six months with no obligation to sign up to any TV packages. All of the broadband offers are only available for a limited amount of time and are only available to customers looking to buy into the Sky Broadband service or existing customers who want to upgrade to a Sky Fibre Unlimited.
What Customer’s Get When They Sign Up
BT Sport, the new sports channels from telecommunications company BT is being offered at £31 per month and includes the sports channels and the broadband service. Given the recent news that Sky have plans to increase their charges by a minimum 10%, it is rumoured that this service from BT may pose a serious threat to Sky’s reign over sports coverage.
If you are an avid sports fan the best thing to do, as with anything, is to compare the packages offered by both providers. Although on average Sky charge more, some of their packages offer access to content that is not otherwise available. Also, Sky still deliver the most comprehensive sports package on the market and so it is important to look at what sports you are interested in watching. BT will be offering extensive coverage of the Premier League but Sky Sports cover The Ashes and the US Open (for example) and, other than highlights, these cannot be viewed on via other TV providers.
Sky News Update: Can Sky hold onto its reign?
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Recent Sky News Update
It has started to surface that Sky, the well known dominator of its service industry, has started to come under threat from other competitors. This speculation has only heightened since rivals such as BT have put huge injections into their own company, offering new and enticing deals to win over customers. This has put pressure on Sky to make sure they do all they can to remain top of their game, and not lose customers in the face of recent competitors actions.
“Mike Parker, director of sponsorship at Carat, is adamant that BT is a serious contender. “Sky has seen off ITV Digital, Setanta and ESPN, but this is the first time it has had a serious competitor in terms of football, and it is fascinating to see how it will react,” he says.
A heavyweight marketing battle beckons: between them, Sky and BT spent an estimated £560m on UK advertising in 2012.
BT has confirmed it will invest at least £30m promoting BT Sport between now and December, with a strong digital emphasis. The brand is encouraging ambassadors such as anchor presenter Jake Humphrey and Manchester United footballer Rio Ferdinand to tweet about its content, although consumer marketing director David James insists any Twitter promotion will be “natural” rather than “contractual”.
The aim, he says, is to send awareness “through the roof” and use its sports content as a loss-leader to encourage customers to switch broadband provider. What is certain is that Sky will look to go toe-to-toe with BT.
There is a precedent for the current situation. When, in 2010, BT began offering Sky Sports packages on its BT Vision platform, Sky responded with a marketing campaign knocking BT’s proposition. It is expected to respond similarly this summer, with a series of promotional offers to dampen the newcomer’s launch.
However, Sky will also be worried by the halo effect BT Sport may have against its rival in the wider battle for consumers’ homes.
Andy Kenny, managing director at sponsorship agency brandRapport, says the new content might inject some much-needed glamour into BT’s staid brand image.
“BT has always stood for Britishness and trustworthiness, supporting its objective of driving broadband-based consumer services,” he adds. “But you sense that BT Sport will give the brand some of the inspiration and emotion it is striving for, and help capture hearts and minds.”
BT’s success is by no means guaranteed. With only 38 live Premier League games per season, plus English domestic rugby union and women’s tennis, some question whether it has enough quality content to truly challenge the market-leader. Unlike Sky, which boasts live coverage of the Ashes Test cricket series and the British and Irish Lions rugby tour to Australia this summer, it also lacks exclusive properties to differentiate itself from the competition.
However, for the first time, some are questioning whether the challenge of BT – along with Liberty Global-owned Virgin Media – may knock Sky from its perch.
Alex DeGroote, a media analyst at Panmure Gordon, believes that Sky is “in trouble”. He adds: “For the first time, it faces two formidable competitors. BT will use predatory pricing. The Sky business model has been based on increasing prices and this is no longer sustainable. Sky will also now face a steep hike in marketing costs.”
It will be interesting to see how Sky reacts, and stands its own in the face of probably their greatest challenge yet. To find out more please call the Sky Telephone Number.The orginial extract from this article is from http://www.marketingmagazine.co.uk .