Kiwi satcaster to offer DVD rentals
Service will cannibalize channel aud but be good earner
The service will have a set fee and send subscribers a set number of DVDs along with prepaid return envelopes.
Sky CEO John Fellet agreed that the service would cannibalize the audience for Sky's movie channels but believes it will be a good commercial earner.
The $10-million-a-year forecast revenue is similar to that gained in the first year of Sky's pay-per-view movie service.
Internet video rental services are in their infancy in New Zealand, with only small players.
The venture was revealed in Sky's annual report that showed revenue up 12.6% on last year to $286 million.
Sky made a net profit of $22.7 million with the number of subscribers increasing 33,711 to 576,602. Around 86% subscribe to the digital satellite services with the remainder picking up the four-channel analog service.
Subs are growing at 2.5% per month and Sky says 40% of New Zealand homes now take Sky. Growth for the year to June 30 was attributed to the success of the UKTV Disney and History channels.
Overall viewing levels have also grown 9% over the previous year.
Meanwhile, Sky confirmed it is involved in merger negotiations with media company INL. Fellet said the merger would not change the day-to-day operation of the service.
