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Sky adds features to movies service to keep up with Netflix | Sky adds features to movies service to keep up with Netflix |
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Sky is adding a watch list, “more like this” recommendations and Rotten Tomato ratings to its Sky+ movies service, as the company feels pressure from services such as Netflix. | Sky is adding a watch list, “more like this” recommendations and Rotten Tomato ratings to its Sky+ movies service, as the company feels pressure from services such as Netflix. |
The new additions, which mirror features available from Amazon, Netflix and several other streaming services, will roll out to the company’s Sky+ and Sky+HD boxes on Thursday. | The new additions, which mirror features available from Amazon, Netflix and several other streaming services, will roll out to the company’s Sky+ and Sky+HD boxes on Thursday. |
Users will be able to flag movies they’re interested in and add them to a list for later access; see recommendations based on previous viewing; and access review ratings within the Sky+ programme guide. | Users will be able to flag movies they’re interested in and add them to a list for later access; see recommendations based on previous viewing; and access review ratings within the Sky+ programme guide. |
Despite launching on-demand services in 2005, predating Netflix’s 2007 video-on-demand service in the US, Sky has been accused of lagging behind its younger competitor. | Despite launching on-demand services in 2005, predating Netflix’s 2007 video-on-demand service in the US, Sky has been accused of lagging behind its younger competitor. |
Stephen Van Rooyen, head of marketing and digital for Sky, said: “One of the differences between Sky and someone like Netflix is that we’ve got a user base of 12 million customers and a lot of them have a long tenure with us.” | Stephen Van Rooyen, head of marketing and digital for Sky, said: “One of the differences between Sky and someone like Netflix is that we’ve got a user base of 12 million customers and a lot of them have a long tenure with us.” |
Netflix users subscribe a month at a time with no minimum-term contract, unlike Sky’s 12- or 18-month contracts. Netflix had 4.3 million subscribers in the UK in the first quarter of 2015. | Netflix users subscribe a month at a time with no minimum-term contract, unlike Sky’s 12- or 18-month contracts. Netflix had 4.3 million subscribers in the UK in the first quarter of 2015. |
“At the end of the day, we have to cater for someone who is young and living in London to someone who lives in Scotland and has been a customer for 10 or 15 years,” said Van Rooyen. “When we change things, we have to do so on a considered basis so that our customers become used to it. The cadence with which we change things, around three or four months to let them bed in, is right for us.” | “At the end of the day, we have to cater for someone who is young and living in London to someone who lives in Scotland and has been a customer for 10 or 15 years,” said Van Rooyen. “When we change things, we have to do so on a considered basis so that our customers become used to it. The cadence with which we change things, around three or four months to let them bed in, is right for us.” |
Sky continues to report strong growth, recently passing the 12 million customer mark in the UK. However, it faces pressure from the availability of significantly cheaper services for watching movies, and the number of cord cutters (people who cancel their subscription services and shop around), is increasing. | |
The BBC recently bolstered iPlayer with new catchup services, meanwhile BT has applied pressure to Sky’s core of sport, expanding its football coverage with English Premiership, European Cup and Europa League matches. | The BBC recently bolstered iPlayer with new catchup services, meanwhile BT has applied pressure to Sky’s core of sport, expanding its football coverage with English Premiership, European Cup and Europa League matches. |
Van Rooyen said: “It must be worth paying for. At the end of the day we are a choice, and customers can decide not to take us at any point, so we have to work pretty hard to convince them that we’re putting services and content together that appeals to them.” | Van Rooyen said: “It must be worth paying for. At the end of the day we are a choice, and customers can decide not to take us at any point, so we have to work pretty hard to convince them that we’re putting services and content together that appeals to them.” |
One way Sky justifies its pay-for service, beyond content, is the company’s mixture of live television over satellite and on-demand services bolted together by its Sky+HD boxes. The boxes use pre-loading on the hard drive to speed up interactive and streaming services, particularly for slower internet connections. | One way Sky justifies its pay-for service, beyond content, is the company’s mixture of live television over satellite and on-demand services bolted together by its Sky+HD boxes. The boxes use pre-loading on the hard drive to speed up interactive and streaming services, particularly for slower internet connections. |
Related: BBC iPlayer takes on Netflix with new catchup features | Related: BBC iPlayer takes on Netflix with new catchup features |
“It’s quite ironic that we see ads around broadband buffering, while at the same time we’ve got a Chelsea-City game on where millions of customers are watching it concurrently in HD. We’re still a while away from being able to sustain multicasting to millions of households in HD simultaneously without any redundancy [on broadband],” said Van Rooyen. | “It’s quite ironic that we see ads around broadband buffering, while at the same time we’ve got a Chelsea-City game on where millions of customers are watching it concurrently in HD. We’re still a while away from being able to sustain multicasting to millions of households in HD simultaneously without any redundancy [on broadband],” said Van Rooyen. |
However, the march of greater bandwidth and internet connectivity points towards a time when the satellite is no longer needed. | However, the march of greater bandwidth and internet connectivity points towards a time when the satellite is no longer needed. |
Sky is not married to the technology that gave the company its name, according to Van Rooyen: “If it becomes more efficient and effective to deliver content over broadband connections our business will evolve that way, as our objective is to make sure it gets to the customers as easily, in as high a quality and at as low cost as is available.” | Sky is not married to the technology that gave the company its name, according to Van Rooyen: “If it becomes more efficient and effective to deliver content over broadband connections our business will evolve that way, as our objective is to make sure it gets to the customers as easily, in as high a quality and at as low cost as is available.” |
• BT escalates row with Sky by calling for Ofcom to probe pay-TV competition | • BT escalates row with Sky by calling for Ofcom to probe pay-TV competition |
• Ofcom investigates Sky over complaints of ignored cancellation requests | • Ofcom investigates Sky over complaints of ignored cancellation requests |
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