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Sky TV is to launch a pay-TV-only service following a fall in subscribers.  Competition from BT and Netflix is believed to be behind the move.

The company has invested heavily in satellite broadcasting and although they are not shelving the technology, their fall in subscribers has increased concerns that they were losing customers.  Half – year results has revealed that customers ending their contract with Sky jumped to 11.6% from 10.2%.

The new service will be internet streaming based, a departure from their satellite medium.  It is believed that the service will be distinct from their current streaming service, Now TV.  It will offer customers a streaming version of Sky Q.

Sky has said they will target two million homes that do not have and do not want a satellite dish.

Sky’s Plan to Boost Subscribers

Sky is planning to reward customers who are with them long – term.  This is a departure for the company who normally only offers incentives to new customers.  They have also launched a mobile network service which is offering savings to pay-TV households.

Jeremy Darroch, Sky’s chief executive said an increase in falling subscriber rates did not affect growth and said in part this was due to a proportion of Sky’s customers who only opted for a broadband deal.  The company did gain 140,000 subscribers in the first half of last year, but it did not reveal how many satellite households left Sky.

TV Rights

Currently, Sky’s problems seem to be mounting with Discovery, the US media giant claiming the broadcaster was not paying a fair price for the fees.

Darroch would not be drawn into the argument publically, saying, “I would prefer to keep these sort of commercial conversations behind closed doors, I think that’s where they belong. But it is what it is.”

Together with rising football rights, Sky has been forced to bring in a streaming service to stem the flow of cancelled subscriptions.

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