New Zealand’s pay television network, Sky Network Television, will introduce a Subscription Video-on-Demand (SVoD) service by the end of this year. SVoD service is likely to be priced for AUD 10.81 to 20.81 (USD 10 to 20) per month, pricing would vary according to the other VoD services from overseas operators such as Quickflix, Ezyflix and Netflix.
Sky Network TV is eying to captivate over 10% more customers, initially; it claims to have over 857,111 subscribers at the end of December, 2013, with 51% market penetration. The company is working out how much content to offer and is in talks with suppliers, said John Fellet, CEO of Sky Network TV. “Instead of building linear channels, (the content) all goes into a pool,” added Fellet. “
The Sky model still works but when we talk to non-customers, clearly this has demand which we want to fill,” Fellet stated. “In order to keep growing we think we need to keep reviewing different business models,” he said, adding the company would “not be able to go from 50 per cent to 75 per cent penetration” with the existing pay-TV model.
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