Sky is set to create a number of its own new, specially curated channels when a major international deal comes to an end - and a new one is forged.
Sky TV is embarking on a major content shake-up with the pending loss of a number of entertainment channels, including those with specialist music and children’s programmes.
The overhaul has been sparked by the upcoming expiry of Sky’s existing programming deal with US giant Paramount Media Networks, which owns channels including MTV 80s, MTV Hits, Comedy Central, Nickelodeon and Nick Jr.
Nickelodeon features hit children’s shows such as SpongeBob SquarePants, Paw Patrol and Rugrats.
All five channels screen on Sky TV as “pass-through” channels.
One source said the channels would come off air this year, but it isn’t clear if that’s a decision being driven by Paramount or Sky itself.
Paramount has its own streaming service, Paramount+, waiting in the wings, although there are apparently still no plans to launch it in New Zealand.
Paramount+ was scheduled to launch in New Zealand in August 2021, but it is understood that move was eclipsed when it renewed its content deal with Sky.
Publicly listed Sky has played a perplexing public relations strategy over the past week in its responses to inquiries about a change in its channels and content strategy.
When Media Insider initially approached the company with information from a source that Sky was about to lose several channels when a major international deal came to an end, a spokeswoman replied with a statement that said the company did not comment on “rumours”.
Within a few days, and following further questions, the company conceded it had undertaken a “significant review of our entertainment strategy”.
This planning had been “under way for many months, including our planning for Sky-curated channels in the place of some of our pass-through channels”.
Sky is painting the upcoming changes in a positive public relations light, saying it plans to retain music and children’s content on new Sky-curated channels.
In its statements over the past week, it has been coy about the overhaul and refused initially to even name or confirm the channels impacted, or which programming deals are coming to an end.
Sky, which had a horror run with customers earlier this year over an ailing satellite and a heavily criticised customer communications response, initially said of the channel changes: “Our strategy focuses on investing in the content we know our customers value.
“We don’t comment on rumours, but we review content agreements regularly and if anything was to change in our content line-up, we would always communicate it openly to our customers.”
When Media Insider went back to Sky with more specific information from our source – and reiterated our information was based on more than “rumours” – the company came back with an updated response, confirming changes.
“We are in constant dialogue with our entertainment content providers about how best to serve customer needs,” Sky TV content and product strategy head Fiona Murray said in a statement.
“We’ve been undertaking a significant review of our entertainment strategy, based on our rich viewership data and what our customers are telling us.
“We have been getting feedback from customers that they don’t like repeats on some of our affiliate channels (for your readers’ reference, these are the channels where we pass content straight through from international providers).
“We’ve been listening to that and want to address it. We are working on plans that would see us create new Sky channels that are more tailored for New Zealand audiences and where we can have more control on the titles we serve.
“We will be working with the same content partners, just in a different way. We know how much our customers value their entertainment content, so we want to reassure them any changes would be made with their preferences in mind.”
The company was “still some way off making any changes” and she said customers would be “the first to hear from us, with plenty of advance notice”.
After further questions, Sky issued a third statement last Monday, further articulating its position.
“We are currently in discussions with an international partner around changes to their pass-through channels within our Sky entertainment portfolio,” Murray said.
“The conversation is about changing the way we work with that partner to deliver content – not a wholesale ‘loss’ of content that our customers love. Our commitment is to continue delivering the shows and content our audiences love, likely through new, Sky-curated channels.
“Historically, pass-through channels have been a good way for content providers to package content for linear distribution. But as entertainment models evolve and viewer habits have shifted, other options may make more sense for some of our partners. That’s the discussion we’re having.”
She said that by building channels itself, Sky could choose and curate content “that we know our customers enjoy and engage with” and reduce the number of repeats.
She reiterated nothing would change for some months.
One of the issues facing Sky TV and other TV networks is consumers turning to platforms such as YouTube in increasing numbers to select specific content, such as children’s shows.
Sky will also no doubt be balancing the commercial opportunity of running its own channels and the risk of a consumer backlash if subscription-paying customers suddenly lose access to some of their favourite channels and shows.
In Australia, pay-channel operator Foxtel recently lost a swag of Warner Bros Discovery children’s content, including the Cartoon Network and Boomerang channels. In 2023, Foxtel lost Nickelodeon and Nick Jr.
Sky still has the Warner Bros Discovery-owned Cartoon Network and it appears this will be retained.
As well as the five Paramount-owned channels that are part of Sky’s menu, Sky’s Neon streaming service also screens shows from Showtime, owned jointly by Paramount and CBS.
Showtime owns shows such as Yellowjackets and Billions.
Sky said: “Showtime shows are available on Neon and Sky and will be for the foreseeable future, including Yellowjackets and Billions. We’re actively working to bring new Showtime titles to Sky and Neon customers.
“For instance ... we are announcing that Dexter: Resurrection will launch on Neon ... we expect a new season of Yellowjackets to launch within the next 12 months, and more show announcements will be forthcoming."
Sky has refused to say if Paramount made the call to end the current terms of the existing contract, or if it was Sky itself.
“The planning for Sky’s refreshed entertainment content framework has been under way for many months, including our planning for Sky-curated channels in the place of some of our pass-through channels. The upcoming ending of a contract period between Sky and Paramount created the opportunity to accelerate this initiative.”
Paramount confirmed the end of the “channel supply agreement later this year”.
Other content partnerships remained in place, said a spokeswoman.
“We appreciate the long-standing partnership with Sky TV and remain committed to delivering exceptional content to our viewers in partnership with Sky.”
Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.
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