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

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 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.

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