Friday, June 10, 2016

Voda-Sky merger

The media is full of the news of Vodafone and Sky TV merging. Will it be a success, reviving the fortunes of both or will it turn out like Microsoft and Nokia - a marriage made in hell. Personally, I don't see it working. My household ditched Sky TV last year for a combination of Freeview, NetFlix and a VPN to let us use the BBC iPlayer. We're saving $60 a month and we all agree we don't miss Sky at all. Their problem is particularly with the younger demographic who don't watch TV in the traditional way (in the lounge on a TV) but consume media on their laptops and smartphones. That really damages Sky's business model. However, they also don't use their phones like their parents. They message much more than they call and very often they are messaging via free WiFi and not using their telco's data plan. This merger seems like two dinosaurs propping each other up for support.

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