SKY responds to the findings of the Commerce Commission’s demand side study into high speed broadband, released earlier today.
“Following a thorough investigation, the Telecommunications Commissioner has identified the cost of using high speed broadband as a crucial factor in whether or not people take up the service. SKY agrees and notes that pricing appears to be heading in the right direction,” says SKY CEO John Fellet.
“Furthermore, the Commission has stated that high speed broadband will support a wide range of uses, including the Government’s key drivers – education, health, business and development.”
Fellet says the Commission stated video content will be the primary driver of consumers’ uptake of broadband, but has also acknowledged that other forms of content will be very important and noted that broadband users will spend most of their time engaged with other content such as social services and blogs, and online games. SKY agrees that the applications for video use via high speed broadband will be very wide-ranging and, in the future, will include services not even considered today.
“Already, people are using SKYPE, FaceTime, iTunes, Microsoft Zune, Xbox Music, Mobile Video, You Tube, Social Media, internet-enabled TV, online gaming and cloud-based video and that list will only grow as high speed broadband becomes available.”
Fellet says SKY will continue to provide new and innovative services to consumers via high speed broadband and already has a next generation set-top box in development, enhancements planned for iSKY and delivery of SKY via more devices including the soon to launch IGLOO service.
“Just as high speed broadband will create new opportunities for SKY, it will also enable new service providers to enter the New Zealand video content market, in particular over-the-top providers from overseas.
“We expect there will be strong and growing competition for online content rights, especially with movies where almost all the rights are non-exclusive,” he says.
SKY has been actively involved in the demand side study, providing background information and making formal submissions to the Commission, as have numerous other parties.