The introduction of the new pricing on 1 September 2005 will coincide with the creation of six genrebased “mixes” of basic channels: Variety; Kids; Knowledge; Style and Culture; Music; and News and Events. To deliver greater flexibility, the new structure will enable customers to build their own package by selecting any two, any four or all six of the new channel mixes. Customers will pay £15.00 per month for a “2 Mix” pack, £18.00 for a “4 Mix” pack or £21.00 for all six mixes, also known as the “Entertainment Pack”.
Irrespective of their selected combination of mixes, customers will be able to subscribe to any combination of Sky’s premium channels. The changes will bring about a five-fold increase in the number of available package options, enabling customers to choose a package that corresponds even more closely to their viewing preferences. In total, the number of available package options will increase to 496 from 96 at present. However, the number of price points for new customers will be streamlined to 15 from the current 96 in order to provide increased simplicity at the point of sale.
Under the new model, the price of the top-tier package, Sky World (with Entertainment Pack), will be £42.50 per month, compared to the current price of £41.00 per month. This package is currently taken by around 50% of Sky digital customers. Sky believes that the reshaping of its packaging and pricing structure will highlight the strength of its channel offering and challenge pre-conceptions that it is an “all or nothing” product. In addition, the changes will allow more targeted marketing to segmented groups of potential customers and will reinforce the highly successful “What do you want to watch?” campaign with a further emphasis that Sky has something for everyone.