Sky TV extends Optus satellite deal

Friday 21st December 2018

Sky Network Television says it has extended its satellite service agreement with Optus Networks for a further 10 years.

The new deal, worth more than $200 million, will provide capacity out to 2031. The current contract expires in 2021.

“The deal means that Sky can continue to ensure that its great content, particularly live sport, can be reliably delivered to 100 percent of New Zealand,” the Auckland-based company said in a statement on NZX.

Sky shares fell 3 cents to $1.97. They have fallen almost 31 percent this year.

New Zealand’s largest pay-TV company is switching to more internet and mobile-based services to better compete with the likes of Netflix. While the firm recognises its 21-year-old digital satellite service is probably past its prime, that option is still important for rural customers and other older customers who don’t have broadband. Satellite technology is also ideal for high-demand sports events.

Today Sky said the “hybrid” delivery of Sky’s content – particularly sport – over both satellite and the internet is a key competitive advantage. New Sky boxes to be delivered later in 2019 will embrace the new technology while ensuring access for those without streaming-capable internet, the company said.

The deal announced today is conditional on Optus procuring fleet enhancements, including the successful launch of a new satellite to replace the existing D1 satellite, launched for Sky in 2006.

Sky said the renewal will allow it to continue improving its product, including its goal of delivering reliable ultra-high definition content to all of New Zealand.

(BusinessDesk)

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