Sky Q: Is the latest viewing innovation a TV game-changer?
Sky has unveiled a new premium TV service, Sky Q, to add to its current Sky+ and NowTV line-up of TV products. Due to launch across the UK and Ireland in early 2016, Sky is adapting to how people want to consume content, allowing “customers to experience TV on their terms”.
Sky Q will put live, on-demand, and recorded TV together. Its focus is on ‘Fluid Viewing’ – a seamless viewing experience that allows the user to watch content in any room, at any time, and on any device. It will also act as a platform for discovery, on top of the usual linear TV guide, and is being branded as a premium layer above the current market offerings, targeting on-demand(ing) users.
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In short, we are not convinced this has the potential to be game-changing.
The reality is that it could take years to move through the installed base of Sky homes. With the price point expected to exceed that of the prevalent package, Sky+, it seems unlikely that vast numbers will take it up immediately. As with Sky+, we foresee take-up to be quite slow, unless (or until) Sky rolls it out as the standard product, but for those customers who go for it Sky will generate high ARPU (average revenue per user) indeed.
This redesign is welcome, and if successful, other TV platforms will have to offer a similar service to compete – all the better for the consumer. But can we not find most of these ideas elsewhere? (For example, Amazon Prime already allows you to pick up where you left off on another device.)
Read more: Seven brilliant features of Apple TV and Netflix rival Sky Q
The technical developments to come with Sky Q will merely be in line with other players in the online space (though notably Sky will be extending its lead amongst TV platforms) – it appears to be simply taking the best features that are available in the market. The advantage that lies with Sky is in its content offering: Sky Q will give people the ability to watch the best programmes wherever, whenever and on whatever, and this is what people want – freedom to watch TV programmes outside of the living room and the linear schedule.
Essentially, Sky is future-proofing its TV product, making its offering more attractive to existing users already paying premium rates and so potentially reducing churn.
A final thought: especially for a premium-priced service, might the lack of Netflix or Amazon Prime, with around 5-6 million subscribers between them, be a significant hindrance? Only time will tell.