SKY TV shares plummet over seven per cent on news of subscription price drop

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Source:

1 NEWS

SKY TV's shares have plummeted by over seven per cent today on the news they are modifying their pricing packages to include a cheaper entry point as the number of satellite TV subscribers continues to drop.

The packages start from as little as $25 per month.
Source: 1 NEWS

The current share price is sitting at $2.59, as of 1.33pm, down 21 cents from the previous close of $2.80.

This price comes close to its five-year low, which was recorded at $2.45 in December.

Almost 34,000 subscribers cancelled their Sky subscriptions in the year to June, prompting the company to look at other options.

Sky's 'Sky Basic' package, which costs $49.91 per month will now be split into two smaller packages called Sky Starter and Sky Entertainment.

People could then choose Sky Starter for $24.91 per month, which features a more limited range of channels compared to 'Basic'.

This means customers could subscribe to a deal including Sky Sports for $54.81 per month, a cut from the current $79.81 minimum.

Those customers who kept both of the newly-minted packages would now also receive the $9.99 Soho channel for free.

The company has also reported a five per cent drop in overall revenue to $433 million for the six months to December.

Despite lower revenue, the company has increased its net profit for the year, up 12 per cent to just under $67 million due to an eight per cent drop in operating costs.

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